Exercise 23-02 a-b Waterway Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,400 golf discs is: 8,162 Materialts Laber Variable overhead 16,632 Fixed overhead31,570 Total 22,792 $79,156 waterway also incurs 7% sales commission ($0.49) on each disc sold McGee Corporation offers Gruden $5.00 per disc for 5,700 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Waterway. If Waterway accepts the offer, its fixed overhead will increase from $31,570 to $36,670 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. (Enter negative amounts using either a negative sign preceding the number e.g 45 or parentheses e.g. (45).) Reject Accept Revenues Materials Laber Variable overhead Fixed overhead Sales commissions Should Waterway accept the special order? Waterway should the special order