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

$20\mathrm{.}298$

Fixed overhead

$39,800$

Total

$$100,694$

Blossom also incurs $4\%$ sales commission $($$$0\mathrm{.}28)$ on each disc sold.

McGee Corporation offers Blossom $$5\mathrm{.}00$ per disc for $5,300$ discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Blossom. If Blossom accepts the offer, it will incur a one$-$time fixed cost of $$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