Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,600 golf discs is:

Materials$10,584Labor28,812Variable overhead19,796Fixed overhead39,984Total$99,176

Gruden also incurs 8% sales commission ($0.56) on each disc sold.

McGee Corporation offers Gruden $4.77 per disc for 5,610 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.

Can you explain how to get the effect on the:

Revenue

Materials

Labor

Material Overhead and sales commission

if we accept the order and how this will effect the net income as well?

Thank you so much in advance for you help!