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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 21,700 golf discs is: Materials Labor Variable

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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 21,700 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 10,416 31,899 20.615 44,485 $107.415 Gruden also incurs 7% sales commission ($0.49) on each disc sold. McGee Corporation offers Gruden $4.90 per disc for 5,500 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 544 485 to $49.795 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. (Enter negative amounts using either a negative sign preceding the number es-45 or parentheses t.8. (45) Reject Order Accept Order Net Income Increase Decrease) Revenues Materials Labor Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es. (45)) Reject Order Accept Order Net Income Increase (Decrease) $ Revenues Materials Labor Variable overhead Fixed overhead Sales commissions Net Income [b] Should Gruden accept the special order Gruden should the special order

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