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Golf Co made 3,000 novelty golf balls last year. The balls normally sell for $7 each. The costs per ball were as follows: This year
Golf Co made 3,000 novelty golf balls last year. The balls normally sell for $7 each. The costs per ball were as follows: This year an overseas company approached Golf Co and asked them to sell an 300 golf balls at $6 each. The sale isn't expected to affect current sales. Most of Golf Co's overhead is fixed, but variable overhead costs are $1.2 per unit. Selling expenses will increase to $1.10 per unit on the special order. Complete the table to determine the incremental profit on the order. What is the incremental profit on the order? Should Golf Co accept the order
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