+ CHAPTER 7 HOMEWORK WITH VIDEO ASSISTANCE Question 1 of 6 -/18 E Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 17,000 golf discs is: Materials $ 9.180 Labor 24.990 Variable overhead 17.850 Fixed overhead 34 340 Total $86,360 Gruden also incurs 6% sales commission ($0.42) on each disc sold. McGee Corporation offers Gruden $5.00 per disc for 5,600 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed overhead will increase from $34,340 to $38,930 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (a) 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) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ Materials Labor Variable overhead Fixed overhead Sales commissions Net income $ (b) Should Gruden accept the special order? Gruden should the special order e Textbook and Media Save for Later Attempts:0 of 3 used Submit