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J K Once you filled up or modified this sheet, on left upper corner click -> 1 close pop up window (Press OK), then CLICK HERE TO SAVE YOUR WORK click SAVE on opening page 2 You must type your name and ID on the second sheet, otherwise the question will not be displayed correctly 3 Question 1 4 Listik Company produces tennis rackets which it normally sells to retailers for $18 each 5 Total cost of manufacturing 30,000 units is as follows: 6 Materials $216,000 7 Labor 108,000 8 Variable overhead 21,600 9 Fixed overhead 60,000 10 Total $405,600 11 Listik also incurs 5% sales commission on each racket sold. Allas company offers Listik $14.40 per racket for 6,000 rackets Allas would sell the rackets under its own brand name in foreign markets not yet served by Listik. If Listik accepts the offer, it will incur a one-time fixed cost of $10,000 due to the rental of an imprinting machine. No sales commission will result from the special order. 14 Instructions 15 16 17 18 1 Prepare an incremental analysis for the special order. 2 Should Listik accept the special order? Why or why not? NI Increase Reject Accept /Decrease 19 20 21 22 Instructions READ ME FIRST Your Name and ID 01 02 Q3 Q4 Q5 Sheet31

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