*Exercise 7-2 a-b (Video) Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,500 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 8,775 30,225 19,305 38,415 $96,720 Gruden also incurs 8% sales commission ($0.56) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 4,900 discs. McGee would sell the discs under its own brand name in foreign markets not yet served $38,415 to $44,725 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Gruden. If Gruden accepts the offer, its fixed overhead will increase from (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg -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 (b) Should Gruden accept the special order? Gruden should the special order