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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached WorldWideCards with a special order. The Hall of Fame wants to purchase 54,000
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached WorldWideCards with a special order. The Hall of Fame wants to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.44 per pack, a total of $23,760.
WorldWideCards's total production cost is $0.64 per pack, as follows:
1. Prepare an incremental analysis to determine whether World Wide Cards should accept the special sales order assuming fixed costs would not be affected by the special order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. World Wide Cards must spend $5,500 to develop this hologram, which will be useless after the special order is completed. Should World Wide Cards accept the special order under these circumstances? Show your analysis. Data table Requirement 1. Prepare an incremental analysis to determine whether World Wide Cards should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.)Step by Step Solution
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