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Exercise 21-2 Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,900 golf discs is: 21-2
Exercise 21-2 Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,900 golf discs is: 21-2 21-3 21-4 21-5 e 21-2 se 21-8 ew 21:2 ew 21-3 Submission jew 21-4 hew 21-5 wiew 21-6 21-1 21-2 21-18 Materials Labor Variable overhead Fixed overhead Total $ 10,994 37,045 25,812 46,605 $120,456 Gruden also incurs 7% sales commission ($0.48) on each disc sold. McGee Corporation offers Gruden $4.91 per disc for 5,130 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 $46,605 to $51,305 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (a) core Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal places, e.g. 15.2500 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) esults by jective Reject Order Accept Order Net Income Increase (Decrease) Revenues Materials Labor Variable overhead Fixed overhead 5ales commissions Net income
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