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Exercise 6 Golf Co made 3,000 novelty golf balls last year. The balls normally sell for $7 each. The costs per ball were as follows:
Exercise 6 Golf Co made 3,000 novelty golf balls last year. The balls normally sell for $7 each. The costs per ball were as follows: Direct materials $1.00 Direct labor $0.50 Overhead $4.00 Selling expenses $0.50 Total cost per ball $6.00 This year an overseas company approached Golf Co and asked them to sell an 900 golf balls at $6 each. The sale isn't expected to affect current sales. Most of Golf Co's overhead is fixed, but variable overhead costs are $1.2 per unit. Selling expenses will increase to $1.10 per unit on the special order. Complete the table to determine the incremental profit on the order. Accept Reject Sales x x Direct materials x x Direct labor xx Overhead |x x Selling expenses xx Profit What is the incremental profit on the order?! Should Golf Co accept the order
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