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3 Splish Company produces golf discs, which it normally sells to retailers for $8 each. The cost of manufacturing 20,500 golf discs is: Splish also
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Splish Company produces golf discs, which it normally sells to retailers for $8 each. The cost of manufacturing 20,500 golf discs is: Splish also incurs 10% sales commission ( $0.80 ) on each disc sold. Golden Corporation offers Splish $4.80 per disc for 5.125 discs. Golden would sell the discs under its own brand name in foreign markets not yet served by Splish. If Splish accepts the offer, it will incur a one-time fixed cost of $6,200 due to the rental of an imprinting machine. No sales commission will result from the special order. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) Incremental contribution margin Incremental cost: Fixed cost Incremental income eTextbook and MediaStep by Step Solution
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