Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Active-Cardz with a Active - Cardz's total production cost is $0.56 per pack, as follows: special order. The Hall of Fame wishes to purchase 55,000 baseball card packs for a special promotional (Click the icon to view the cost information.) campaign and offers $0.36 per pack, a total of $19,800. Active-Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Active - Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Variable manufacturing cost: packs x Expected in operating income Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Active-Cardz will spend $5,800 to develop this hologram, which will be useless after the special order is completed. Should Active - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.38 per pack? Start by preparing the analysis with the additional cost for the special hologram. (Enter decreases to profits with a parentheses or minus sign.) i Data Table Expected increase in revenues Expected increase in expenses: Variable costs: Direct materials $ Variable manufacturing cost: packs x Fixed manufacturing costs Direct labor Variable overhead 0.09 0.09 0.08 0.30 0.56 Choose from any list or enter any number in the input fields and then continue to the next question. Fixed overhead Total cost Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Active-Cardz with a special order. The Hall of Fame wishes to purchase 55,000 baseball card packs for a special promotional campaign and offers $0.36 per pack, a total of $19.800. Active-Cardz's total production cost is $0.56 per pack, as follows: B (Click the icon to view the cost information.) Active-Cardz has enough excess capacity to handle the special order. Read the requirements. packs x L in operating income Expected Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Active - Cardz will spend $5,800 to develop this hologram, which will be useless after the special order is completed. Should Active-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.36 per pack? Start by preparing the analysis with the additional cost for the special hologram. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses: Variable manufacturing cost: L packs x L Fixed manufacturing costs i Data Table Expected increase in total expenses Variable costs: Expected in operating income Direct materials Decision: Direct labor Variable overhead 0.09 0.09 0.08 0.30 Choose from any list or enter any number in the input fields and then continue to the next question. Fixed overhead 0.56 Total cost
