Crane Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $12,500 Labor 37,750 Variable overhead 25,250 Fixed overhead 50,400 Total $125,900 Crane also incurs 5% sales commission ($0.30) on each disc sold. Rudd Corporation offers Crane $4.40 per disc for 3.700 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Crane. If Crane accepts the offer, its fixed overhead will increase from $50,400 to $54.100 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Reject Order Accept Order Net Income Effect Revenues $ o 0 $ $ $ Materials V o Labor o Variable Overhead 0 Fixed Overhead 0 Sales Commissions Net Income /(Loss) $ 0 $ $ Touthool and Media