varazz mad unoagmozouo vapaUILy oTIanaio tro poia orc. i Data Table Requirements 0.0 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. Variable costs: $ Direct materials 0.13 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec Cardz must spend $5,100 to develop this hologram, which will be useless after the special order is completed. Should Rec - Cardz accept the special order under these circumstances? Show your analysis Direct labor 0.07 Variable overhead 0.10 aseballd ircumsta 0.25 in Fixed overhead 0.55 Total cost Done Print er Unit Print Done Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec-Cardz with a special order. The Hall of Fame wants to purchase 55,000 baseball card packs for a special promotional campaign and offers $0.35 per pack, a total of $19.250 Rec Cardz's total production cost is S0.55 per pack, as follows E(Click the icon to view the cost information.) Rec Cardz has enough excess capacity to handle the special order. Read the requirements. 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. (Enter a "O minus sign to indicate a decrease in operating income from the special order.) for any zero balances. Use parentheses or a Total Order Incremental Analysis of Special Sales Order Decision Per Unit (55,000 units) 19250 Revenue from special order 0.35 Less variable expense associated with the order 55000 0.30 Variable manufacturing costs 0.05 Contribution margin 16500 Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Accept the special sales order. Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec-Cardz must spend $5,100 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. (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 Incremental Analysis of Special Sales Order Decision Per Unit (55,000 units) Revenue from special order Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec - Cardz must spend $5,100 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. (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 (55,000 units) Incremental Analysis of Special Sales Order Decision Per Unit Revenue from special order Less variable expense 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 Decision: Accept the special sales order. tinue to the next question. ? Enter any Accept the special sales order Reject the special sales order
