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es goll' discs which It normally sells to retailers for $7 each. The cost or iscs is: 4 . 5 Variable overhead 25,812 Fixed overhead
es goll' discs which It normally sells to retailers for $7 each. The cost or iscs is: 4 . 5 Variable overhead 25,812 Fixed overhead 46,605 Total $120,456 Gruden also incurs 7% sales commission ($0.48} on each disc sold. McGee Corporation offers Gruden $4.91 per disc for 5,130 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 xed overhead will increase from $46,605 to $51,305 due to the purchase of a new imprinting machine. No sales commission will result from the special order
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