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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,100 golf discs is: 7,852 Results by

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Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,100 golf discs is: 7,852 Results by study Labor 21,744 Variable overhead 4,496 Fixed overhead 30,502 S74,594 Gruden also incurs 6% sales commission ($0.43) on each disc sold. McGee Corporation offers Gruden $4.95 per disc for 4,590 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 $30,502 to $35,342 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 answers to o decimal places, e.g. 1250. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Reject Accept Order Revenues SC 00 Variable overhead

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