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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,600 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 19,600 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 10,584 28,812 19,796 39,984 $99,176 Gruden also incurs 8% sales commission ($0.56) on each disc sold. McGee Corporation offers Gruden 54.80 per disc for 5,600 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 $39,984 to $46,134 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. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es. (451) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ Materials 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 S (b) Should Gruden accept the special order

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