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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,100 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 19,100 golf discs is: Materials Labor Variable overhead Fixed overhead $ 9,550 29,414 20,437 38,009 $97.410 Total Gruden also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Gruden $4.90 per disc for 6,000 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 $38,009 to $44.179 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 e.g. (451) Prepare an incremental analysis for the special order. (Enter negative amounts using elther a negative sign preceding the number eg.-45 or parentheses eg.(451) Reject Order Accept Order Net Income Increase (Decrease) Revenues Materials Labor Variable overhead Fixed overhead Sales commissions Net Income $

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