1. Gruden Company produces golf discs which it normally sells to retailers for $6.91 each. The cost of manufacturing 24,500 golf discs is: Materials Labor Variable overhead 24,990 Fixed overhead Total $12,740 38,710 48,020 $124,460 McGee Corporation offers Gruden $5 per disc for 5,700 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed overhead will increase from $48,020 to $54,509 due to the purchase of a new imprinting machine What effect will acceptance of the special order have on net income