CSLO-C07-AE07-2

Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 17,800 golf discs is: $ 8.366 25,988 Variable overhead 17.266 35.600 587,220 Labor Fixed overhead Gruden also incurs 7% sales commission ($0.49) on each disc sold. McGee Corporation offers Gruden $4.80 per discfor 5,900 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 $35,600 to $40,250 due to the purchase of a new imprinting machine No sales commission will result from the special order. 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)) Net Income Order Order Variable overhead Fixed overhead Sales commissions Net income Should Gruden accept the special order? Gruden should the special order