Exercise 21-2 Your answer is partially correct. Try again. Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,700 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 12,798 36,498 23,937 46,215 $119,448 Gruden also incurs 6% sales commission ($0.43) on each disc sold. McGee Corporation offers Gruden $4.96 per disc for 5,620 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 $46,215 to $51,625 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).) S or parentharest wholdeputations for per Reject Order Accept Order Net Income Increase (Decrease) Revenues 27875.2 165900 Materials 3034.8 12798 Labor 8654 36499 Variable overhead 5676.2 23937 Fixed overhead 5410 Sales commissions Net income 5099.4 36261 5099.4 (b) Should Gruden accept the special order? Gruden should accept the special order