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Exercise 20-2 Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 24,200 golf discs is Materials
Exercise 20-2 Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 24,200 golf discs is Materials Labor Variable overhead Fixed overhead Total 12,342 36,542 25,894 47,916 $122,694 Gruden also incurs 5% sales commission ($0.35) on each disc sold McGee Corporation offers Gruden $4.77 per disc for 4,820 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 fixed overhead will increase from $47,916 to $53,006 due to the purchase of a new i commission will result from the special order. mprinting machine. No sales
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