Purchase Solution

Operational Accounting for the Baseball Hall of Fame

Not what you're looking for?

Ask Custom Question

Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Active-Cardz with a special order. The Hall of Fame wishes to purchase 50,000 base-ball card packs for a special promotional campaign and offers $0.37 per pack, a total of $18,500. Active-Cardz's total production cost is $0.57 per pack, as follows:

Variable costs:

Direct Materials $0.14
Direct Labor 0.07
Variable Overhead 0.11
Fixed Overhead 0.25
Total Cost $0.57

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

Requirements:

1. Prepare an incremental analysis to determine whether Active-Cardz should accept the special sales order.

2. Now assume that the Hall of Fame wants special hologram baseball cards. Active-Cardz will spend $5,800 to develop this hologram, which will be useless after the special order is completed. Should Active-Cardz accept the special order under these circumstances?

Please see attached for the full question set.

Attachments
Purchase this Solution
Solution Summary

Your tutorial shows you the special order strategy and creates a contribution margin income statement in reverse, starting with profits and working back to sales. Then, the markup percent can be created from the various cost bases. The missing pieces is solved by sequential solutions starting with prime costs. See excel attached. Each problem is a separate tab. Click in cells to see computation.

Solution Preview

Your tutorial shows you the special order strategy and creates a contribution margin income ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

View More Free Quizzes
Related BrainMass Solutions

  • What Can George Steinbrenner and the Yankees Teach Us About Economies and Diseconomies of scale?

    Despite this amazing success, only 5 of those players went on to the baseball Hall of Fame. That is a total of 500 possible players with only 1% of them making it to the Hall of Fame as part of baseball's elite.

  • Role of Baseball in America's Pop Culture

    In terms of racial history, another key moment to summon racial equity in sports in "1966 when baseball great Ted Williams called for recognition of black baseball stars during his Hall of Fame induction acceptance speech.

  • Sports Tourism

    Celebrity and nostalgia sport tourism includes those who travel to visit hall of fame venues or travel to meet celebrity athletes for a vacation.

  • Regression

    Thanks you Baseball writers call this "sophomore slump" the idea being that star players get distracted by endorsements, television appearances, fame, etc and don't perform as well. Does the data support the idea of sophomore slump?

  • Benefits of Adopting an REA

    The REA approach gives a different view of accounting by creating a central database. The key elements of REA model are resources, events and agents (Hall, 2004).

  • Sports Law Article Critique

    This past week, Roger Clemens was acquitted of performance enhancing drug charges, yet, fans still question if he belongs in the Baseball Hall of Fame.

  • Net income (or loss) for the period

    411924 Net income (or loss) for the period The accounting records of Rhonda's Rugs show the following balances at Dec 31 Cash $3,000 Notes payable $ 9,000 Equipment 21,000 Owners

  • Lesson Plan using Bloom

    He or show demonstrates how a journalist covering the war in Iraq was his or her chosen Hero Hall of Fame nominee. The poster must display reasons for the choice, along with pictures.

  • Management Planning at Arthur Anderson

    Upper Saddle River, New Jersey: Pearson Prentice-Hall. Virginia, M.M. & John, C. (2000). Arthur Andersen: Challenging the Status Quo. The Journal of Business Leadership 11 (3), 71-89. American National Business Hall of Fame.

View More Related Solutions