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: Materials $ 10,994 Labor 37,045 Variable overhead 25,812 Fixed overhead 46,605 Total $120,456 on 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) 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).) Net Income Reject Order Accept Order Increase (Decrease) Revenues Materials Labor Variable overhead Fixed overhead 3.2300 Jllu all 0uel tUmpulalluins dllu al anSwers to Lhe hearest Whole dollar, e.g. 5,/25. Enter negative e 21-5 amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) e 21:7 Net Income se 21-8 Reject Order Accept Order Increase w 21-2 (Decrease) ew 21-3 Submission) Revenues ew 21-4 ew 21-5 Materials iew 21-6 Labor 21-1 21-2 Variable overhead 21-18 Fixed overhead pre sults by Sales commissions ective Net income (b) Should Gruden accept the special order? Gruden should the special order. accept reject LINK TO TEXT VIDEO: APPLIED SKILLS By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor