Gruden Company produces golf discs, which it normally sells to retailers for $12each. The cost of manufacturing18,400golf discs is:

Materials $10,488

Labour 30,544

Variable overhead 22,080

Fixed overhead 41,000

Total $104,112

Gruden also incurs5% sales commission ($0.60) on each disc sold.

McGee Corporation offers Gruden $7.20per disc for4,600discs. 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 $41,000to $46,600due 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.

Incremental contribution margin- ?

Add/less- ???

Fixed cost- ???

Incremental income ???

Should Gruden accept the special order? Why or why not?(Whatever is in bold please select anyone because those are options)

Gruden shouldnot accept/accept the special order, as it willincrease/decrease

their net income by $??????

What assumption underlies the decision made in part (b)?

The assumption underlying the decision is that current sales will/will notbe affected if Gruden accepts the offer.