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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

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

Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 3EQ: A florist offers three sizes of flower arrangements containing roses, daisies, and chrysanthemums....
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SportsCards Inc. manufactures basketball cords sold in pocks of 10 in drugstores and grocery stores throughout the country. It is the second leading firm in an industry 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. Eoch 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 SportsCards would incur no marketing costs for the special order. It has the capacity to accept this order without interrupting regular production. Required: 1. The number of sheets to manufacture for the special order is (#1) 2. The total relevant cost of the special order is (#2) P 3. Accepting the special order will (increase or decrease?) (#3) sheets total operating income by (#4) P Activi
Transcribed Image Text:SportsCards Inc. manufactures basketball cords sold in pocks of 10 in drugstores and grocery stores throughout the country. It is the second leading firm in an industry 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. Eoch 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 SportsCards would incur no marketing costs for the special order. It has the capacity to accept this order without interrupting regular production. Required: 1. The number of sheets to manufacture for the special order is (#1) 2. The total relevant cost of the special order is (#2) P 3. Accepting the special order will (increase or decrease?) (#3) sheets total operating income by (#4) P Activi
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