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Current Attempt in Progress Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,900 golf discs
Current Attempt in Progress Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,900 golf discs is: Crane also incurs 7% sales commission (\$0.49) on each disc sold. McGee Corporation offers Crane $4.90 per disc for 5,100 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 $4,700 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 negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (b) Should Crane accept the special order? Crane should the special order
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