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Harrison Company produces golf discs which it normally sells to retailers for exist7 each. The cost of manufacturing 20,000 golf discs is: Harrison also Incurs

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Harrison Company produces golf discs which it normally sells to retailers for exist7 each. The cost of manufacturing 20,000 golf discs is: Harrison also Incurs 5% sales commission (exist0.35) on each disc sold. Towson Corporation offers Harrison exist5.00 per disc for 4,000 discs. Towson would sell the discs under its own brand name in foreign markets not yet served by Harrison If Harrison accepts the offer, its fixed overhead will increase from exist50,000 to exist55,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Instructions (a) Prepare an incremental analysis for the special order. (b) Should Harrison accept the special order? Why or why not? (c) What assumptions underlie the decision made in part (b)

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