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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Tiger - Cardz with a special order. The Hall of Fame wishes to
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Tiger - Cardz with a special order. The Hall of Fame wishes to purchase 54.000 baseball card packs for a special promotional campaign and offers $0.41 per pack, a total of $22,140. Tiger - Cardz's total production cost is $0.61 per pack, as follows: E: (Click the icon to view the cost information.) Tiger - Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Tiger - 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. Tiger - Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Tiger - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.41 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 i Data Table Expected increase in expenses: Variable manufacturing cost: packs x Variable costs: Fixed manufacturing costs Direct materials Expected increase in total expenses Direct labor Expected in operating income Variable overhead Fixed overhead Decision Total cost $ 0.11 0.10 0.10 0.30 S 0.61 Print Done
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