# Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hungry Cardz with a special

## Question:

Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hungry Cardz with a special order. The Hall of Fame wishes to purchase 55,000 baseball card packs for a special promotional campaign and offers $0.33 per pack, a total of$18,150. Hungry-Cardz’s total production cost is $0.53 per pack, as follows: Variable costs: Direct materials....................................$ 0.13
Direct labor.......................................... 0.04
Total cost.............................................$0.53 Hungry-Cardz has enough excess capacity to handle the special order. Requirements 1. Prepare a differential analysis to determine whether Hungry-Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hungry Cardz will spend$5,000 to develop this hologram, which will be useless after the special order is completed. Should Hungry-Cardz accept the special order under these circumstances, assuming no change in the special pricing of \$0.33 per pack?
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