Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Alley $-$ Cardz with a special order. The Hall of Fame

wishes to purchase $55,000$ baseball card packs for a special promotional campaign and offers $$0\mathrm{.}27$ per pack, a total of $$14,850$

Alley $-$ Cardz's total production cost is $$0\mathrm{.}47$ per pack, as follows:

$($Click the icon to view the cost information.$)$

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

Read the requirements.

Requirement $1.$ Prepare a differential analysis to determine whether Alley $-$ 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:

$.)$acks $x$

$0\mathrm{.}47$

n operating income

$$,14,850$

$-11,000$

Requirements

Prepare a differential analysis to determine whether Alley $-$ Cardz should

accept the special sales order.

Now assume that the Hall of Fame wants special hologram baseball cards.

Alley $-$ Cardz will spend $$5,800$ to develop this hologram, which will be useless

after the special order is completed. Should Alley $-$ Cardz accept the special

order under these circumstances, assuming no change in the special pricing of

$$0\mathrm{.}27$ per pack?

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