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

Materials		$9,996
Labour		31,620
Variable overhead		19,992
Fixed overhead		43,000
Total		$104,608

Kingbird also incurs 5% sales commission ($0.50) on each disc sold. Accustart Corporation offers Kingbird $5.00 per disc for 5,100 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 a one-time fixed cost of $5,900 due to the rental of an 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, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) Incremental contribution margin $ Incremental cost: Fixed cost Incremental income $ Should Kingbird accept the special order? Why or why not? Kingbird should the special order, as it will their net income by $ eTextbook and Media What assumption underlies the decision made in part (b)? The assumption underlying the decision is that current sales be affected if Kingbird accepts the offer