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Exercise 20-2 Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of m anufacturing 17,000 golf discs is
Exercise 20-2 Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of m anufacturing 17,000 golf discs is 9,180 24,990 Materials Labor Variable overhead 17,850 Foxed overhead 34,340 Total $86,360 also incurs 6% sales cornmission ($0.42) on each disc sold. McGee not yet served by Gruden. If Gruden accepts the its new imprinting machine. No sales commission will result from the speaal order n offers Gruden $4.95 per disc for 5,570 dists. MoGee would sell the discs under its own brand name in foreign markets fixed overhead will increase from $34,340 to $38,930 due to the purchase of a the ofte, its fired overhead will nerease from $34,340 to $38.830 due to the purchase of a erepare an incremental analysis for the special order. (Round answers to o decimal places, e.a. 1250. Enter aegative amounts usion either a negative sign preceding the number e.o. 45 or parentheses e.o. (45.2 Reject Order Accept Order Net Income Increase (Decrease) Materials Labor Variable overhead Fixed overhead Sales commissions Net income Should Gruden accept the special order? Gruden should
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