*Exercise 7-2 Your answer is partially correct. Try again Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,100 golf discs is: Materials Labor Variable overhead 20,437 Fixed overhead Total $ 9,550 29,414 38,009 $97,410 Gruden also incurs 5% sales commission ($0.36) on each disc sold McGee Corporation offers Gruden 4.90 per disc for 5,960 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed overhead will increase from $38,009 to $44,179 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. (Round answers to 0 decimal places, e.g. 1250. Enter negative 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 133700 162904 $2920 Materials 9550 12530 98 Labor 29414 38592 17 Variable overhead 20437 26814 37 Fixed overhead 38009 44179 17 Sales commissions 6685 (6685) Net income 29605 40788 11183