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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 20,100 golf discs is: Materials

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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 20,100 golf discs is: Materials Labor Variable overhead20,100 Fixed overhead Total $ 10,653 29,346 41,205 $101,304 Gruden also incurs 4% sales commission (S0.29) on each disc sold McGee Corporation offers Gruden $4.94 per disc for 5,020 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 $41,205 to $46,895 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. 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) Labor Variable overhead

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