Special hologram baseball cards

Reference no: EM13758369

Special order decisions given two scenarios (Learning Objective 2) Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collectible Cards with a special order. The Hall of Fame wants to purchase 57,000 baseball card packs for a special promotional campaign and offers $0.40 per pack, a total of $22,800. Collectible Cards' total production cost is $0.60 per pack, as follows:

Variable costs:
Direct materials	$0.13
Direct labor	0.06
Variable overhead	0.11
Fixed overhead	0.30
Total cost	$0.60

Collectible Cards has enough excess capacity to handle the special order.

1. Prepare an incremental analysis to determine whether Collectible Cards should accept the special sales order assuming fixed costs would not be affected by the special order.

2. Now assume that the Hall of Fame wants special hologram baseball cards. Collectible Cards must spend $5,000 to develop this hologram, which will be useless after the special order is completed. Should Collectible Cards accept the special order under these circumstances? Show your analysis.

Reference no: EM13758369

Questions Cloud

What-if analysis component : This module's project piece adds a What-If analysis component into your Excel project workbook. Using whatever tools and examples are at your disposal, incorporate at least one supported What-If analysis into your Excel project workbook

Manufacturing company annual report : Using the library and other course resources, find a manufacturing company's annual report.

Public "personal" clouds : Public "Personal" Clouds on page 218 in the text and answer the questions below. APA formatting guidelines require a title page, abstract page, and reference page in addition to the body of the paper.

Counterargument for causality : As you work through these questions, remember that association does not equal causation. If a statement sounds reasonable, you may find it helpful to try to refute any arguments for causation . In fact, the best way to approach causality if often ..

Special hologram baseball cards : Now assume that the Hall of Fame wants special hologram baseball cards. Collectible Cards must spend $5,000 to develop this hologram, which will be useless after the special order is completed. Should Collectible Cards accept the special order und..

Perform a risk analysis on the reengineered process : perform a risk analysis on the reengineered process. identify obstacles to the reengineered process. evaluate obstacles to the reengineered process

Graphic-rating scale method of performance appraisal : Discuss the job dimensions that can be measured by the graphic-rating scale method of performance appraisal. Identify the problems that are associated with graphic-rating scales.

Company first international expansion : Imagine that you are an executive for XYZ, Inc., a high-end retail chain that sells luxury watches, jewelry, and hand bags. You've just been put in charge of the company's first international expansion, opening a store in Shanghai, China.

Develop argument in which you take a position on ad campaign : A marketing team presents a children's cereal brand manager with the “Less Sugar” ad campaign for three of her brands. Large print and dynamic type on the package exclaiming “75% LESS SUGAR” will catch the parent’s eye and increase sales.

User Account

All Pages