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2. Snickers Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is Materials $10,000

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2. Snickers Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is Materials $10,000 Labor 30,000 Variable overhead 20,000 40.000 $100,000 Fixed overhead Total Snickers also incurs 5 % sales commission ($0.30) on each disc sold. Lucky Corporation offers Snickers $4.25 per disc for 3,000 discs. Lucky would sell the discs under its own brand name in foreign markets not yet served by Snickers. If Snickers accepts the offer, its fixed overhead will increase from $40,000 to $43,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order Instructions (a) Prepare an incremental analysis for the special order.( Do not use a comma for a thousands-separator. Use minus (-) if needed) Reject orde r Accept order Net income effect Revenue S $ Materials S $ S Labor 0 $-3600 $-3600 Variable overhead S Fixed overhead C Sales commissions 0 S Net income (b) Should Snickers accept the special order? Snickers should the special order (Write accept or reject in the bracket), because snickers can save S

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