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Current Attempt in Progress Your answer is partially correct. Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost
Current Attempt in Progress Your answer is partially correct. Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,400 golf discs is: Materials $ 8,162 Labor 22,792 Variable overhead 16,632 Fixed overhead 31.570 Total $79,156 Gruden also incurs 7% sales commission ($0.49) on each disc sold. McGee Corporation offers Gruden $5.00 per disc for 5,700 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 $31,570 to $36,670 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 e.g. (45).) (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses e.g. (45).) Revenues Materials Labor Variable overhead Fixed overhead Sales commissions Net income S Reject Order Accept Order 109000 3021 Net Income Increase (Decrease) 109000 30214 4364 4436 6156 4156 5100 5100 0
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