Exercise 20-02 a-b (Video) Blossom Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs is: Materials Labor Variable overhead $ 10,547 30,049 20,298 39,800 $100,694 Fixed overhead Total Blossom also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Blossom $5.00 per disc for 5,300 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Blossom. If Blossom accepts the offer, its fixed overhead will increase from $39,800 to $44,300 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 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 $ $ (b) Should Blossom accept the special order? Blossom should the special order. Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEO: SIMILAR EXERCISE