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Suppose the Baseball Hall of Fame in Cooperstown, New Yorks, has approached World Wide Cards with a special order. The Hall of Fame wants to
Suppose the Baseball Hall of Fame in Cooperstown, New Yorks, has approached World Wide Cards with a special order. The Hall of Fame wants to purchase 56.000 baseball card packs for a special promotional campaign and offers S0.38 per pack, a total of 321.280. Works Wide Cards's total production cost is 50.58 per pack, as follows: Click the icon lo viow the cost information) World Wide Cards has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether World Wice 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.) Total Order Per Unit 156,000 units) Data Table -X Incremental Analysis of Special Sales Order Decision Revenue from special order Loss variable exprise associated with the order Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Variable costs: Direct materials Direct labor 0.12 D.06 Variable overhead Fixed overhead. 0.10 0.30 0.58 Total cost Done
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