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Wantum - Cardz's total production cost is $0.60 per pack, as follows: Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Wantum - Cardz with a special order. The Hall of Fame wishes to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.40 per pack, a total of $21,600. E (Click the icon to view the cost information.) Wantum - Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Wantum - 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 Variable manufacturing cost: packs x Expected in operating income Decision: - X - X Data table $5, Requirements Requirem the specia Start by pr Accept the special sales order. hes 1. Prepare a differential analysis to determine whether Wantum- Cardz should accept the special sales order. Variable costs: Expecte Reject the special sales order. Direct materials %24 0.15 2. Now assume that the Hall of Fame wants special hologram baseball cards. Wantum - Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.40 per pack? Expecte Direct labor 0.10 Variable manufacturing cost: Variable overhead 0.10 packs x 0.25 Fixed overhead Fixed manufacturing costs 0.60 Total cost

Wantum - Cardz's total production cost is $0.60 per pack, as follows: Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Wantum - Cardz with a special order. The Hall of Fame wishes to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.40 per pack, a total of $21,600. E (Click the icon to view the cost information.) Wantum - Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Wantum - 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 Variable manufacturing cost: packs x Expected in operating income Decision: - X - X Data table $5, Requirements Requirem the specia Start by pr Accept the special sales order. hes 1. Prepare a differential analysis to determine whether Wantum- Cardz should accept the special sales order. Variable costs: Expecte Reject the special sales order. Direct materials %24 0.15 2. Now assume that the Hall of Fame wants special hologram baseball cards. Wantum - Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.40 per pack? Expecte Direct labor 0.10 Variable manufacturing cost: Variable overhead 0.10 packs x 0.25 Fixed overhead Fixed manufacturing costs 0.60 Total cost

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 2CMA
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- Cardz's total production cost is $0.60 per pack, as follows: Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Wantum - Cardz with a special order. The Hall of Fame wishes to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.40 per pack, a total of $21,600. Wantum (Click the icon to view the cost information.) Wantum - Cardz has enough excess capacity to handle the special order. Read the requirements. ..... Requirement 1. Prepare a differential analysis to determine whether Wantum - 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 Variable manufacturing cost: packs x Expected in operating income Decision: - X Data table $5, Requirements Requirem the specia n- Cardz ac Start by pr Accept the special sales order. hes 1. Prepare a differential analysis to determine whether Wantum - Cardz should accept the special sales order. Variable costs: Expecte Reject the special sales order. Direct materials 0.15 2. Now assume that the Hall of Fame wants special hologram baseball cards. Wantum - Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.40 per pack? Expecte Direct labor 0.10 Variable manufacturing cost: Variable overhead 0.10 packs x 0.25 Fixed overhead Fixed manufacturing costs $ 0.60 Total cost Eypooted inorease in totol oxnenses %24
Transcribed Image Text:- Cardz's total production cost is $0.60 per pack, as follows: Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Wantum - Cardz with a special order. The Hall of Fame wishes to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.40 per pack, a total of $21,600. Wantum (Click the icon to view the cost information.) Wantum - Cardz has enough excess capacity to handle the special order. Read the requirements. ..... Requirement 1. Prepare a differential analysis to determine whether Wantum - 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 Variable manufacturing cost: packs x Expected in operating income Decision: - X Data table $5, Requirements Requirem the specia n- Cardz ac Start by pr Accept the special sales order. hes 1. Prepare a differential analysis to determine whether Wantum - Cardz should accept the special sales order. Variable costs: Expecte Reject the special sales order. Direct materials 0.15 2. Now assume that the Hall of Fame wants special hologram baseball cards. Wantum - Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.40 per pack? Expecte Direct labor 0.10 Variable manufacturing cost: Variable overhead 0.10 packs x 0.25 Fixed overhead Fixed manufacturing costs $ 0.60 Total cost Eypooted inorease in totol oxnenses %24
Data table Requirements Suppos The Ha per pad Variable costs: 1. Prepare a differential analysis to determine whether Wantum - Cardz should accept the special sales order. Direct materials $ 0.15 2. Now assume that the Hall of Fame wants special hologram baseball cards. Wantum - Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.40 per pack? Direct labor 0.10 Requir Variable overhead 0.10 0.25 Expe Fixed overhead Expe 0.60 Total cost Print Done Expe Print Done Decisid Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Wantum - Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accep the special order under these circumstances, assuming no change in the special pricing of $0.40 per pack? Start by preparing the analysis with the additional cost for the special hologram. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses: Variable manufacturing cost: packs x Fixed manufacturing costs Expected increase in total expenses Expected in operating income Decision:
Transcribed Image Text:Data table Requirements Suppos The Ha per pad Variable costs: 1. Prepare a differential analysis to determine whether Wantum - Cardz should accept the special sales order. Direct materials $ 0.15 2. Now assume that the Hall of Fame wants special hologram baseball cards. Wantum - Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.40 per pack? Direct labor 0.10 Requir Variable overhead 0.10 0.25 Expe Fixed overhead Expe 0.60 Total cost Print Done Expe Print Done Decisid Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Wantum - Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accep the special order under these circumstances, assuming no change in the special pricing of $0.40 per pack? Start by preparing the analysis with the additional cost for the special hologram. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses: Variable manufacturing cost: packs x Fixed manufacturing costs Expected increase in total expenses Expected in operating income Decision:
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