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Kingbird Company produces golf disc, which it normally sells to retailers for $10 each. The cost of manufacturing 20,400 golf discs is: Materials $9996 Labour

Kingbird Company produces golf disc, which it normally sells to retailers for $10 each. The cost of manufacturing 20,400 golf discs is: Materials $9996 Labour 31620 Variable overhead 19992 Fixed overhead 43000 Total $104608 Kingbird also incurs 5% sales commission ($0.50) on each disc sold. Accustart Corporation offers Kingbird $5.00 per disc for 5100 discs. Accustart would sell the discs under its own brand name in foreign markets not yet served by Kingbird. If Kingbird accepts the offer, it will incur one-time fixed cost of $5900 due to the rental of an imprinting machine. No sales commissions will result from special order

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