Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,900 golf discs is:

Materials	10994
Labor	37045
Variable Overhead	25,812
Fixed overhead	46,605
Total	120,456

Gruden also incurs 7% sales commission ($0.48) on each disc sold. McGee Corporation offers Gruden $4.91 per disc for 5,130 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 $46,605 to $51,305 due to the purchase of a new imprinting machine. No sales commission will result from the special order.

	Reject Order	Accept Order	Net Income Increase (Decrease)
Revenues
Materials
Labor
Variable overhead
Fixed overhead
Sales commissions
Net income