6 of 12 < > -18 Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is: Materials $ 10,100 Labor 29,088 Variable overhead 22.018 Fixed overhead 39.794 Total $101,000 Gruden also incurs 4% sales commission ($0.20) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 4,800 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 foed overhead will increase from $39,794 to $44.824 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (4) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg-45 or parentheses eg. (45)) Reject Accept Order Order Net Income Increase (Decrease) 5:33 PM Homework: Chapter 20 Question 6 of 12 -18 1 Reject Order Accept Order Increase (Decrease) Revenues Materials Labor Variable overhead Fixed overhead Sales commissions Net income (b) Should Gruden accept the special order? Gruden should the special order. 5:33 PM Search