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Cullumber Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is: Cullumber also incurs
Cullumber Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is: Cullumber also incurs 4% sales commission ( $0.28 ) on each dise sold. McGee Corporation offers Cullumber $4.80 per dise for 4,800 dises. McGee would sell the discs under its own brand name in foreign markets not yet served by Cullumber. If Cullumber accepts the offer, it will incur a one-time fixed cost of $5,030 due to the rental of an imprinting machine. No sales commission will result from the special order. Assume there is sutficient capacity to accommodate the special order. Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).)
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