# Question: Suppose the Baseball Hall of Fame in Cooperstown New York

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 57,000 baseball card packs for a special promotional campaign and offers \$ 0.41 per pack, a total of \$ 23,370. Hobby- Cardz’s total production cost is \$ 0.61 per pack, as follows:
Variable costs:
Direct materials......... \$ 0.13
Direct labor .......... 0.06
Total cost ........... \$ 0.61

Hobby- Cardz has enough excess capacity to handle the special order.

Requirements
1. Prepare a differential analysis to determine whether Hobby- Cardz should accept the special sales order.
2. Now assume that the Hall of Fame wants special hologram baseball cards. Hobby- Cardz will spend \$ 5,900 to develop this hologram, which will be use-less after the special order is completed. Should Hobby- Cardz accept the special order under these circumstances, assuming no change in the special pricing of \$ 0.41 perpack?

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