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Suppose the Hockey Hall of Fame in Toronto has approached Trader-Cardz with a special order. The Hall of Fame wants to purchase 53,000 hockey card

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Suppose the Hockey Hall of Fame in Toronto has approached Trader-Cardz with a special order. The Hall of Fame wants to purchase 53,000 hockey card packs for a special promotional campaign and offers $0.40 per pack, a total of $21,200. Trader-Cardz's total production cost is $0.60 per pack, as follows: E: (Click the icon to view the cost information.) Trader-Cardz has enough excess capacity to handle the special order. Requirements 1. Prepare an incremental analysis to determine whether Trader-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. 2. Now assume that the Hall of Fame wants special hologram hockey cards. Trader-Cardz must spend $2,300 to develop this hologram, which will be useless after the special order is completed. Should Trader-Cardz accept the special order under these circumstances? Show your analysis. Requirement 1. Prepare an incremental analysis to determine whether Trader-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.) Cost information 21200 Trader-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 Variable costs: Direct materials $ 0.15 0.07 Direct labour Variable overhead 0.08 Expected increase (decrease) in operating income 0.30 Fixed overhead. 0.60 Total cost Print Done

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