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I made sure that the questions with drop downs are showing the possible answers. Gruden Company produces golf discs, which it normally sells to retailers
I made sure that the questions with drop downs are showing the possible answers.
Gruden Company produces golf discs, which it normally sells to retailers for $8 each. The cost of manufacturing 20,500 golf discs is Materials $10,045 Labour 28,085 Variable overhead 20.090 Fixed overhead 37.000 Total $95.220 Gruden also incurs 10% sales commission ($0.80) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 5,125 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 $37,000 to $43,200 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 per unit calculations to 2 decimal places, eg. 15.25 and final answers to decimal places, eg. 5,275.) Incremental contribution margin Incremental cost: Add Less Fixed cost Incremental income $ Should Gruden accept the special order? Why or why not? Gruden should the special order, as it willStep by Step Solution
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