Gruden Company produces golf discs which it normally sells to retailers for $$7$ each. The cost of manufacturing $15,400$ golf discs is:

Gruden also incurs $7\%$ sales commission $($$$0\mathrm{.}49)$ on each disc sold.

McGee Corporation offers Gruden $$5\mathrm{.}00$ per disc for $5,700$ 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 $$31,570$ to $$36,670$ 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 e$.$g$.-45$ or

parentheses e$.$g$.(45).)$

$($b$)$

Should Gruden accept the special order?

Gruden should

the special order.

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