Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with...

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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 57,000 baseball card packs for a special promotional campaign and offers $0.45 per pack, a total of $25,650 Rec-Cardz's total production cost is $0.65 per pack, as follows: (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 "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Incremental Analysis of Special Sales Order Decision 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 Per Unit Total Order (57,000 units) order The Hall of Fame wants to purchase 57.000 Data table Clich Ca - - X e th the Variable costs: Direct materials $ 0.14 Direct labor 0.09 ec- ter a Variable overhead 0.12 om t 0.30 Fixed overhead..... $ 0.65 Total cost.. P Print Done Requirements 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. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec Cardz must spend $5,000 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. 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 57,000 baseball card packs for a special promotional campaign and offers $0.45 per pack, a total of $25,650 Rec-Cardz's total production cost is $0.65 per pack, as follows: (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 "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Incremental Analysis of Special Sales Order Decision 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 Per Unit Total Order (57,000 units) order The Hall of Fame wants to purchase 57.000 Data table Clich Ca - - X e th the Variable costs: Direct materials $ 0.14 Direct labor 0.09 ec- ter a Variable overhead 0.12 om t 0.30 Fixed overhead..... $ 0.65 Total cost.. P Print Done Requirements 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. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec Cardz must spend $5,000 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. Print Done -