Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Sports - Cardz with a special order. The Hall of Fame wishes to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.40 per pack, a total of $21,600.

Sports - Cardz total production cost is $0.60 per pack, as follows:

Variable costs:

Direct materials

$0.15

Direct labor

0.10

Variable overhead

0.10

Fixed overhead

0.25

Total cost

$0.60

Sports-Cardz has enough excess capacity to handle the special order.

Requirements:

1.	Prepare a differential analysis to determine whether Sports - Cardz should accept the sales order.
2.	Now assume that the Hall of Fame wants special hologram baseball cards. Sports - Cardz will spend $5,800 to develop this hologram, which will be useless after the special order is completed. Should Sports - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.40 per pack?