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Crane Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is Materials $10.500
Crane Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is Materials $10.500 Labor 31.250 Variable overhead 20.750 Fixed overhead 41,600 Total $104,100 Crane also incurs 5% sales commission ($0.30) on each disc sold. Rudd Corporation offers Crane $4.50 per disc for 3.100 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 $41,600 to $44,700 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 es. (45). Do not leave any field blank. Enter O for the amounts.) Reject Order Accept Order Net Income Effect 3 $ $
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