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Gruden Company produces golf discs which it normally sells to retailers for dollar 7 each. The cost of manufacturing 23,900 golf discs is: Gruden also
Gruden Company produces golf discs which it normally sells to retailers for dollar 7 each. The cost of manufacturing 23,900 golf discs is: Gruden also incurs 7 percentage sales commission (dollar 0.48) on each disc sold. McGee Corporation offers Gruden dollar 4.91 per disc for 5,130 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 dollar 46,605 to dollar 51,305 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 computations for per unit cost to 4 decimal places, e.g. 15.2500 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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