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Gruden Company produces golf discs, which it normally sells to retailers for $10 each. The cost of manufacturing 20.400 polt discs is Materials $9.996 Labour

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Gruden Company produces golf discs, which it normally sells to retailers for $10 each. The cost of manufacturing 20.400 polt discs is Materials $9.996 Labour 31.620 Variable overhead 19,992 Fixed overhead 43,000 Total $104,608 Gruden also incurs 5% sales commission ($0.50) on each disc sold. McGee Corporation offers Gruden $5,00 per disc for 5.100 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 $43,000 to 348.900 due 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. (Round per unit calculations to 2 decimal places, es 1525 and final answers to decimal places, eg. 5,275.) Incremental contribution margin $ Incremental cost: Fixed cost Incremental income $ Should Gruden accept the special order? Why or why not? Gruden should the special order, as it will their net income by 5 eTextbook and Media Question Part Score What assumption underlies the decision made in part{bi? The assumption underlying the decision is that current sales be affected if Gruden accepts the offer

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