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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby - Cardz...

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Accounting

Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby - Cardz with a special order. The Hall of Fame wants to purchase 58,000 baseball card packs for a special promotional campaign and offers $0.37 per pack, a total of $21,460.
Hobby - Cardz's total production cost is $0.57 per pack, as follows:
(Click the icon to view the cost information.)
Hobby - Cardz has enough excess capacity to handle the special order.
Read the requirements.
Requirement 1. Prepare an incremental analysis to determine whether Hobby - Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.)
Incremental Analysis of Special Sales Order Decision Per Unit
\table[[Total Order],[(58,000 units)]]
Revenue from special order
Less variable expense associated with the order:
Variable manufacturing costs
Contribution margin
Less: Additional fixed expenses associated with the order
Increase (decrease) in operating income from the special order
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