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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 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 23,600 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 12,744 36,344 24,308 48,144 $121,540 Gruden also incurs 7% sales commission ($0.49) on each disc sold. McGee Corporation offers Gruden $4.88 per disc for 5,140 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 $48,144 to $52,714 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 answers to decimal places, es. 1250. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) cum machine. No sales commission will result from the special order. 14. JATAULU purchase orari Prepare an incremental analysis for the special order. (Round answers to decimal places, s. 1250. Enter negative amounts using elther a negative sign preceding the number eg.-45 or parentheses e-8. (451) Relect Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ 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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