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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collector - Cardz with a special order. The Hall of Fame wishes to purchase 56,000 baseball card packs for a special promotional campaign and offers $0.38 per pack, a total of $21,280, Collector - Cardz's total production cost is $0.58 per pack, as follows: E (Click the icon to view the cost information.) Collector - Cardz has enough excess capacity to handle the special order. Read the requirements Requirement 1. Prepare a differential analysis to determine whether Collector - Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Data Table Variable manufacturing cost: packs x Variable costs: Expected in operating income Direct materials 0.1 Direct labor 0.09 Variable overhead 0.08 0.30 Fixed overhead $ 0.58 Total cost

Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collector - Cardz with a special order. The Hall of Fame wishes to purchase 56,000 baseball card packs for a special promotional campaign and offers $0.38 per pack, a total of $21,280, Collector - Cardz's total production cost is $0.58 per pack, as follows: E (Click the icon to view the cost information.) Collector - Cardz has enough excess capacity to handle the special order. Read the requirements Requirement 1. Prepare a differential analysis to determine whether Collector - Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Data Table Variable manufacturing cost: packs x Variable costs: Expected in operating income Direct materials 0.1 Direct labor 0.09 Variable overhead 0.08 0.30 Fixed overhead $ 0.58 Total cost

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collector - Cardz with a special order. The Hall of Fame wishes to purchase 56,000 baseball card packs for a special promotional campaign and offers $0.38 per pack, a total of $21,280. Collector - Cardz's total production cost is $0.58 per pack, as follows: E (Click the icon to view the cost information.) Collector - Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Collector - Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues - X Expected increase in expenses Data Table Variable manufacturing cost: packs x Variable costs: Expected in operating income Direct materials 0.11 Direct labor 0.09 Variable overhead 0.08 0.30 Fixed overhead 0.58 Total cost
Transcribed Image Text:Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collector - Cardz with a special order. The Hall of Fame wishes to purchase 56,000 baseball card packs for a special promotional campaign and offers $0.38 per pack, a total of $21,280. Collector - Cardz's total production cost is $0.58 per pack, as follows: E (Click the icon to view the cost information.) Collector - Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Collector - Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues - X Expected increase in expenses Data Table Variable manufacturing cost: packs x Variable costs: Expected in operating income Direct materials 0.11 Direct labor 0.09 Variable overhead 0.08 0.30 Fixed overhead 0.58 Total cost
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