Question: = Homework: Chapter 8 Homework Question 5, E8-23A (boo... Part 1 of 4 HW Score: 19.09%, 19.09 of 100 points O Points: 0 of 10

= Homework: Chapter 8 Homework Question 5, E8-23A (boo... Part 1 of 4 HW Score: 19.09%, 19.09 of 100 points O Points: 0 of 10 Save Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collectibles & More with a special order. The Hall of Fame wants to purchase 53,000 baseball card packs for a special promotional campaign and offers $0.32 per pack, a total of $16,960. Collectibles & More's total production cost is $0.52 per pack, as follows: (Click the icon to view the cost information.) Collectibles & More has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether Collectibles & More 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.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (53,000 units) Requirements Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Data Table Contribution margin 1. Prepare an incremental analysis to determine whether Collectibles & More 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. Collectibles & More must spend $5,100 to develop this hologram, which will be useless after the special order is completed. Should Collectibles & More accept the special order under these circumstances? Show your analysis. Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Variable costs: $ 0.11 Direct materials Direct labor Variable overhead 0.06 0.10 Print Done 0.25 Fixed overhead. $ 0.52 Total cost. Print Done
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