Exercise 12-2 Indigo Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 21,700 golf discs is: Materials Labor Variable overhead 20,615 Fixed overhead Total 10,416 31,899 44,485 $107,415 Indigo also incurs 7% sales commission ($0.48) on each disc sold. McGee Corporation offers Indigo $4.86 per disc for 5,480 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Indigo. If Indigo accepts the offer, its fixed overhead will increase from $44,485 to $49,795 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. (Round answers to O decimal places, e.g. 1250. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45)) Reject Order Accept Order Net Income Increase (Decrease) Revenues Materials Labor Variable overhead Fixed overhead Sales commissions Net income Should Indigo accept the special order? Indigo should special order