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Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15.100 golf discs is: Materials $
Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15.100 golf discs is: Materials $ 7,852 Labor 21,744 Variable overhead 14,496 Fixed overhead 30,502 Total $74,594 Crane also incurs 6% sales commission ($0.42) on each disc sold. McGee Corporation offers Crane $5.00 per disc for 4,600 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Crane. If Crane accepts the offer, it will incur a one-time fixed cost of $4,840 due to the rental of an imprinting machine. No sales commission will result from the special order. Assume there is sufficient capacity to accommodate the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negativ sign preceding the number e.g. 45 or parentheses e.g. (45).) Reject Accept Order Order Net Income Increase (Decrease)
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