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Business, 21.04.2020 20:06 1kafran1

1. $5,600 Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collector-Cards 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-Cards total production cost is $0.58 per pack, as follows: Variable costs: Direct materials $ 0.11 Direct labor 0.09 Variable overhead 0.08 Fixed overhead 0.30 Total cost $ 0.58 Collector-Cards has enough excess capacity to handle the special order.. Requirements 1. Prepare a differential analysis to determine whether Collector-Cards should accept the special sales order. 2. 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

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