Exercises EX-2:29 226: Use incremental analysis for 49 Special - order decision ABC Company produces golf discs which it normally. sells to retailers for $4each. The cost of manufacturinn 20,000 golf discs is: Materials Labor Variable overhead Fixed overheed $ 10.000 30,000 20,000 40.000 $ 100,000 Jotal ABC also incurs St Sales Commission ($ 0.35) on each dise sold_ xy2 Corporation offers ABC $4.80 per disc for Sicoo discs. Xyz could sell the discs under 5,000 its own brand name in foreign markets not yet served by ABC. If ABC accepts the offer, its fixed overhead will increase from $40,000 to $46,000 due to the purchase of anew imprinting machine. Nb Sales Commission will result from the special order Required. Q- Prepare an incremental analysis for the special order. b- Should ABC accept the special order ? Why or why nota c_ What assumptions underlie the decision made in Part(b)