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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs is: Materials $ 10,945

Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs is:

Materials $ 10,945
Labor 29,651
Variable overhead 21,094
Fixed overhead 39,004
Total $100,694

Gruden also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Gruden $4.77 per disc for 5,350 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 $39,004 to $45,374 due to the purchase of a new imprinting machine. No sales commission will result from the special order.

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la) Prepare an incremental analysis for the special order. (Round answers to 0 decimal places, eg. 1250. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues Materials Labor Variable overhead Fixed overhead Sales commissions Net income Should Gruden accept the special order? Gruden should the special order accept reject

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