Exercise 20-02 a-b (Video) Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,100 golf discs is: Materials Labor Variable overhead Fixed overhead $ 7,852 21,744 14,496 30,502 $74,594 Total Crane also incurs 6% sales commission ($0.42) on each disc sold. McGee Corporation offers Crane $5.00 per disc for 4,600 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Crane. IT Crane accepts the offer, its fixed overhead will increase from $30,502 to $35,342 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.ge (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues Materials Labor Variable overhead Fixed overhead Sales commissions Net income (b) Should Crane accept the special order? Crane should the special order