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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 16,700 golf discs is: Gruden also incurs
Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 16,700 golf discs is: Gruden also incurs 6% sales commission (\$0.42) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 5,100 discs. McGee would sell the dises under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its foxed overhead will increase from $32,899 to $38,779 due to the purchase of a new imprinting machine. No sales commission wili result from the special order. (a) Prepare an incremental analysis for the special order. (Enter negotive omounts using either o negotive sign preceding the number cy, 45 or parentheses eg (45). Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg - 45 or parentheseseg. (45).) (b) Should Gruden accept the special order? Gruden should the special order. Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 16,700 golf discs is: Gruden also incurs 6% sales commission (\$0.42) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 5,100 discs. McGee would sell the dises under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its foxed overhead will increase from $32,899 to $38,779 due to the purchase of a new imprinting machine. No sales commission wili result from the special order. (a) Prepare an incremental analysis for the special order. (Enter negotive omounts using either o negotive sign preceding the number cy, 45 or parentheses eg (45). Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg - 45 or parentheseseg. (45).) (b) Should Gruden accept the special order? Gruden should the special order
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