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URGENT!!!! Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby - Cardz with a special order. The Hall of Fame wishes
URGENT!!!!
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby - Cardz with a special order. The Hall of Fame wishes to purchase 50,000 baseball card packs for a special promotional campaign and offers $0.36 per pack, a total of $18,000, Hobby-Cardz's total production cost is $0.56 per pack, as follows: B Click the icon to view the cost information.) Hobby - Carcz has enough excess capacity to handle the special order. Read the requirements Requirement 1. Prepare a differential analysis to determine whether Hobby-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 Expected in operating income Decision Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hobby-Cardz will spend $5,400 to develop this hologram, which will be useless after the special order is completed. Should Hobby-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.36 per pack? Start by proparing the analysis with the additional cost for the special holograrn. (Enter decreases to profils with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses: Variable manufacturing cost: packs Fixed manufacturing costs Expected increase in total expenses Expected in operating income = -X Data table Variable costs: Direct materials $ 0.14 0.07 Direct labor Variable overhead 0.10 0.25 Fixed overhead 0 $ $ 0.56 Total cost S Print Done
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