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Blue Spruce Company produces golf discs, which it normally sells to retailers for $12 each. The cost of manufacturing 20,400 golf discs is: Materials Labour
Blue Spruce Company produces golf discs, which it normally sells to retailers for $12 each. The cost of manufacturing 20,400 golf discs is: Materials Labour Variable overhead Fixed overhead Total $9,384 29,580 22,032 39,000 $99,996 4 Blue Spruce also incurs 5% sales commission ($0.60) on each disc sold. Marx Corporation offers Blue Spruce $7.20 per disc for 5,100 discs. Marx would sell the discs under its own brand name in foreign markets not yet served by Blue Spruce. If Blue Spruce accepts the offer, it will incur a one-time fixed cost of $6,000 due to the rental of an imprinting machine. No sales commission will result from the special order. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5.275)
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