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blossom company produces golf discs which it normally sells to retailers for $ 7 each. the cost of manufacturing 1 9 , 9 0 0

blossom company produces golf discs which it normally sells to retailers for $7 each. the cost of manufacturing 19,900 golf discs is: materials $ 10,547 labor 30,049 variable overhead 20,298 fixed overhead 39,800 total $100,694 blossom also incurs 4% sales commission ($0.28) on each disc sold. mcgee corporation offers blossom $5.00 per disc for 5.300 discs. mcgee would sell the discs under its own brand name in foreign markets not yet served by blossom. if blossom accepts the offer, it will incur a one-time fixed cost of $4,500 due to the rental of an imprinting machine. no sales commission will result from the special order. assume there is sufficient capacity to accommodate the special order.

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