Expected in Operating Income Assignment
E25-10 (similar to) Question Help Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Sports-Cardz with a special order. The Hall of Fame wishes to purchase 51,000 baseball card packs for a special promotional campaign and offers $0.32 per pack, a total of $16,320 Sports- Cardz's total production cost is $0.52 per pack, as follows (Click the icon to view the cost information.) Sports-Cardz has enough excess capacity to handle the special order Read the requirements Requirement 1. Prepare a differential analysis to determine whether Sports- Cardz should accept the special sales order. (Enter decreases to profits with parentheses or minus sign.)
16.320 Expected increase in revenues Expected increase in expenses Variable manufacturing cost 4590 51,000 packs x 0.09 20910 increas Expected in operating income Choose from any list or enter any number in the input fields and then click Check Answer parts remaining 3 Clear All Final Check – X ord i Data Table Variable costs: 0.14 Direct materials 0.04 Direct labor 0.09 Variable overhead 0.25 Fixed overhead 0.52 Total cost Done Print i Requirements 1. Prepare a differential analysis to determine whether Sports-Cardz should accept the special sales order.
2. Now assume that the Hall of Fame wants special hologram baseball cards. Sports-Cardz will spend $5,500 to develop this hologram, which will be useless after the special order is completed. Should Sports-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.32 per pack?
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