Gruden Company produces golf discs which it normally sells to retailers for $6.94 each. The cost of manufacturing 16,700 golf discs is:

Materials $8,684

Labor 25,551

Variable overhead 18,203

Fixed overhead 32,899

Total $85,337

Gruden also incurs 8% sales commission ($0.56) on each disc sold. McGee Corporation offers Gruden $5 per disc for 5,300 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 $32,899 to $38,701 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 e.g. -45 or parentheses e.g. (45).)

Reject Order Accept Order

Net Income Increase (Decrease) Revenues $ $ $ Materials Labor Variable overhead Fixed overhead Sales commissions Net income $ $ $