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Gruden Company produces golf discs, which it normally sells to retailers for $9 each. The cost of manufacturing 22.000 golf discs is: Materials Labour Variable

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Gruden Company produces golf discs, which it normally sells to retailers for $9 each. The cost of manufacturing 22.000 golf discs is: Materials Labour Variable overhead Fooed overhead Total $9.020 31.460 20.460 36,500 $97.440 Gruden also incurs 5% sales commission ($0.45) on each disc sold. McGee Corporation offers Gruden $450 per disc for 5.500 discs. McGee would sell the dises under its own brand name in foreign marlarts not yet served by Gruden If Gruden accepts the offer, its fixed overhead will increase from $36,500 to $41.500 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. (Round per unit calculations to 2 decimal places, es 15.25 and final answers to decimal places, es 5.275) S Incremental contribution margin Incremental cost Food cost Incremental income e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Should Gruden accept the special order? Why or why not? Gruden should the special order, as it will their net income by 5

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