Question
Bramble Company produces golf discs, which it normally sells to retailers for $10 each. The cost of manufacturing 19,500 golf discs is: Materials Labour Variable
Bramble Company produces golf discs, which it normally sells to retailers for $10 each. The cost of manufacturing 19,500 golf discs is: Materials Labour Variable overhead Fixed overhead Total $9,555 30,030 22,035 43,000 $104,620 Bramble also incurs 10% sales commission ($1.00) on each disc sold. Lawn Corporation offers Bramble $5.00 per disc for 4,875 discs. Lawn would sell the discs under its own brand name in foreign markets not yet served by Bramble. If Bramble accepts the offer, it will incur a one-time fixed cost of $5,200 due to the rental of an imprinting machine. No sales commission will result from the special order.
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