Larkin Company produces golf discs which it normally sells to retailers for $$6$ each. The cost of manufacturing $25,000$ golf discs is:

Materials

$$10,000$

Labor

$30,000$

Variable overhead

$20,000$

Fixed overhead

$40,000$

Total

$$100,000$

Larkin also incurs $5\%$ sales commission $($$$0\mathrm{.}30)$ on each disc sold.

Rudd Corporation offers Larkin $$4\mathrm{.}25$ per disc for $3,000$ discs. Rudd would sell the discs under its own brand name in foreign markets not served by Larkin. If Larkin accepts the offer, its fixed overhead will increase from $$40,000$ to $$43,000$ due to the purchase of a new imprinting machine. No sales commission will result from the special order. Larkin has sufficient capacity to Prepare an incremental analysis for the special order. $($Enter negative amounts using either a negative sign preceding the number eg$.$

$-45$ or parentheses eg$.(45).$ Do not leave any field blank. Enter $0$ for the amounts.$)$

Reject Order

Accept Order

Net Income Effect

$

$

$-/1$

Search

SUPPC

$3\mathrm{.}56$ PM

$4/23/2024$

$2$

#

$3$

W

E

D

$*$

$

$4$

R

F

$\%$

$5$

$6$

T

G

Y

&

$7$

H

$*$

U

J

$8$

$9$

K

Iaccommodate the special