Exercise 23-02 a-b Waterway Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs is: Materials Labor Variable overhead21,094 Fixed overhead Total $10,945 29,651 $100,694 Waterway also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 5,400 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 $39,004 to $45,374 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 negaive 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) Revenues Materials Labor Variable overhead Fixed overhead Sales commissions Net income Should Waterway accept the special order? Waterway should the special order