Suppose the Hockey Hall of Fame in Toronto has approached Rec-Cardz with a Requirements special order . The Hall of Fame wants to purchase 59,000 hockey card packs for 1. Prepare an incremental analysis to determine whether Rec-Cardz should a special promotional campaign and offers $0.42 per pack, a total of $24.780. accept the special sales order assuming fixed costs would not be affected by Rec-Cardz's total production cost is $0.52 per pack, as follows: the special order. (Click the icon to view the cost information.) 2. Now assume that the Hall of Fame wants special hologram hockey cards. Rec Cardz must spend $2,800 to develop this hologram, which will be Rec-Cardz has enough excess capacity to handle the special order. useless after the special order is completed. Should Rec-Cardz accept the special order under these circumstances? Show your analysis. Requirement 1. Prepare an incremental analysis to determine whether Rec-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.) Rec-Cardz Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses: Variable manufacturing costs 24780 6690.6 Fixed manufacturing costs Total expected increase in expenses Expected increase (decrease) in operating income Rec-Cardz should accept the special sales order under these circumstances. Requirement 2. Now assume that the Hall of Fame wants special hologram hockey cards. Rec-Cardz must spend $2,800 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether Rec-Cardz should accept the special order under these circumstances. (Use parentheses or a minus sign to enter a decrease in operating income.) Rec-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 Rec-Cardz should under these circumstances. corptio. 0 Cost information X Variable costs: Direct materials $ 0.15 Direct labour 0.06 Variable overhead 0.06 0.25 Fixed overhead $ 0.52 Total cost Print Done