Making special pricing decisions Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collector-Cardz with a special order. The Hall of Fame

Best Writers accounting, business-managerial-accounting Making special pricing decisions Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collector-Cardz with a special order. The Hall of Fame

accounting, business-managerial-accounting

Making special pricing decisions Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collector-Cardz with a special order. The Hall of Fame

Making special pricing decisions 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: Collector-Cardz has enough excess capacity to handle the special order. Requirements Prepare a differential analysis to determine whether Collector—Cardz should accept the special sales order. Now assume that the Hall of Fame wants special hologram baseball cards. Collector—Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should Collector-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.38 per pack? Transcribed Image Text: Variable costs:
Direct materials
$0.11
Direct labor
0.09
Variable overhead
0.08
Fixed overhead
0.30
Total cost
$0.58

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