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Exercise 7-2 Gruden Company produces golf discs which it normaly selts to retailers for $7 each. The cost of manufacturing 20,ooo golf discs is Materins
Exercise 7-2 Gruden Company produces golf discs which it normaly selts to retailers for $7 each. The cost of manufacturing 20,ooo golf discs is Materins Labor Verisble overhead 20,000 ixed overheed Total s 10,000 30,000 40,000 $100,000 Gruden also incurs 5% seles commission (So. 35) on each dsc sold. McGee Corporation offers Gruden $4.80 per disc for 5,000 discs. McGee would sel the discs under its own brand name in foreign markats not yat served by Gruden. It Gruden acceots the oter, is fxed overhead will increase from $40,000 to $46,000 due to the purchase of a new imprinting mschine. No sales commission wil result from the special order Prepare an incremental analysis for the special order. (Round answers to 0 decimal places, e.g. 1250. Enter negative amounts using either a megative sign preceding the nuber es s o parentheses e.g. (45)) Reject (Decrease) Materiss Labar Variable overhead
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