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Suppose the baseball hall of fame in cooperstown

30/12/2020 Client: saad24vbs Deadline: 6 Hours

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




E25-10 Making special pricing decisions




E25-10 Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby-Cardz with a special order. The Hall of Fame wishes to purchase 57,000 baseball card packs for a special promotional campaign and offers $0.41 per pack, a total of $23,370. Hobby-Cardz’s total production cost is $0.61 per pack, as follows:




Variable costs:


Direct materials $ 0.13


Direct labor 0.06


Variable overhead 0.12


Fixed overhead 0.30


       Total cost $ 0.61






Hobby-Cardz has enough excess capacity to handle the special order.

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