Suppose the Hockey Hall of Fame in Toronto has approached Active-Cardz with a special order. The Hall of Fame wants to purchase 59,000 hockey card packs for a special promotional campaign and offers $0.46 per pack, a total of $27, 140. Active-Cardz's total production cost is $0.60 per pack, as follows: (Click the icon to view the cost information.) Active-Cardz has enough excess capacity to handle the special order. Requirements Requirement 1. Prepare an incremental analysis to determine whether Active-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. (Use parentheses or a minus sign to enter a decrease in operating income.) Active-Cardz Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses: Variable manufacturing costs Fixed manufacturing costs Total expected increase in expenses Expected increase (decrease) in operating income Active-Cardz should the special sales order because the operating income is expected to Requirement 2. Now assume that the Hall of Fame wants special hologram hockey cards. Active-Cardz must spend $2,400 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether Active-Cardz should accept the special order under these circumstances. (Use parentheses or a minus sign to enter a decrease in operating income.) Active-Cardz X Cost information Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses: Variable costs: Variable manufacturing costs Direct materials $ 0.16 Fixed manufacturing costs Direct labour 0.10 Total expected increase in expenses Variable overhead . . . . . . ... . 0.11 Expected increase (decrease) in operating income Fixed overhead 0.23 $ 0.60 Total cost Active-Cardz should the special sales order under these circumstances because the operating income is expected to ....... ............... Print Done Time Remaining: 02:50:08 Next