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A B D 1 K M E232 Gruden Company produces golf discs which it normally sells to retailers for 57 each. The cost of manufacturing

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A B D 1 K M E232 Gruden Company produces golf discs which it normally sells to retailers for 57 each. The cost of manufacturing 20,000 gof discs is: Materials $10,000 Labor $30,000 Variable overhead $20,000 Fixed overhead $40.000 $100.000 1 2 3 4 5 6 7 & 9 10 11 12 11 14 15 16 17 18 19 20 21 22 23 24 25 26 Gruden also incurs 5% (50.35) sales commission on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 5,000 discs. McGee would sell the discs uner its own brand name in foreign markets not yet served by Gruden, Gruden accepts the offer, its fixed costs will increase from $40,000 to $46,000 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 b. Should Gruden accept the special order? Why or why not? G. What assumptions undertie the decision made in part 2

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