SportsCards Inc. manufactures basketball cards sold in pocks of 10 in drugstores and grocery stores throughout the country. It is the second leading firm in an indu with four major firms. SportsCards has been approached by Zip Cereal inc, which would like to order a special edition of cards to use as a promotion with its new cereal. SportsCards would be solely responsible for designing and producing the cards. Zip wants to order 30,000 sets and has offered P25,500 for the total order. Each set will consist of 30 cards. SportsCords currently produces cards in sheets of 120 Production, marketing and other costs (per sheet: Direct materials Direct lobor Variable overhead Fixed overhead variable marketing Fixed marketing insurance, taxes and administrative salaries Additional cost for the special order: Design Other setup costs P1.30 0.25 0.45 0.20 0.05 0.35 0.10 2,500 5,000 SportsCards would incur no marketing costs for the special order. It has the capacity to accept this order without interrupting regular production

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