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Flounder Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs is: Flounder Company produces

Flounder Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs is:

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Flounder Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs is: Materials $ 12,744 Labor 36,344 Variable overhead 24'308 Fixed overhead 48,144 Total $121,540 Flounder also incurs 7% sales commission ($0.49) on each disc sold. McGee Corporation offers Flounder $4.88 per disc for 5,140 discs. McGee would sell the discs under its own brand name in foreign markets not yet sewed by Flounder. If Flounder accepts the offer, its xed overhead will increase from $48,144 to $52,714 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (a) Prepare an incremental analysis for the special order. (Round answers to a decimal places, e.g. 1250. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Accept Net Income Order Order Increase (Decrease) $ $ Revenues 3; Materials Labor Variable overhead Fixed overhead Reject Accept Net Income Order Order Increase (Decrease) Revenues $ Materials Labor Variable overhead Fixed overhead Sales commissions Net income $ ('3) Should Flounder accept the special order? Flounder should : the special order

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