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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 22.200 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 22.200 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 11,100 33.966 24.198 45,066 $114.330 Gruden also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Gruden $4.90 per disc for 4,700 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 $45,066 to $50,726 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number es.-45 or purencieses ey: 1451:7 Reject Order Accept Order Net Income Increase (Decrease) Revenues $ GA $ Materials Labor Variable overhead Fixed overhead Sales commissions Net income $ $ $ (b) Should Gruden accept the special order? Gruden should the special order

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