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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is: Materials $ 9,090

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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is: Materials $ 9,090 Labor 29,290 19,392 Variable overhead Fixed overhead Total 39.794 $97,566 Gruden also incurs 8% sales commission ($0.56) on each disc sold. McGee Corporation offers Gruden $4.80 per disclor 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 $39794 to $45,304 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 sin preceding the number eg 450 parentheses es. (45)) a Question 6 of 13 0.55 AN Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ Materials 0 Labor 0 Variable overhead 0 Fixed overhead 0 -5510 5510 Sales commissions O 0 S $ Net income o a to search

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