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Blossom Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $12,500 Labor

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Blossom Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $12,500 Labor 37,250 Variable overhead 24,750 Fixed overhead 49,600 Total $124,100 Blossom also incurs 5% sales commission ($0.30) on each disc sold. Rudd Corporation offers Blossom $4.50 per disc for 3,700 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Blossom. If Blossom accepts the offer, its fixed overhead will increase from $49,600 to $53,300 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts 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). Do not leave any field blank. Enter for the amounts) Net Incor Accept Order Reject Order $ $ $ > $ $ Variable Overhead Revenues Labor Fixed Overhead Materials Sales Commissions Net Income /(Loss) a Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative signi preceding the number eg.-45 or parentheses eg. (45). Do not leave any field blank. Enter for the amounts.) Net Income Effect Reject Order Accept Order $ $ I $ $ hrome e Textbook and Media Should Blossom accept the special order? Blossom accept the special order. should should not e Textbook and Media

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