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 ($0.30) on each disc sold. Rudd Corporation offers Larkin $4.25 per disc for 3,000 discs. Rudd would sell the discs under its own brand name in foreign markets not yet 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.

(a)

Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.)

		Reject Order		Accept Order		Net Income Effect
Fixed OverheadLaborNet Income / (Loss)Sales CommissionsMaterialsRevenuesVariable Overhead		$		$		$
Net Income / (Loss)Fixed OverheadSales CommissionsRevenuesLaborVariable OverheadMaterials
MaterialsRevenuesSales CommissionsNet Income / (Loss)Variable OverheadFixed OverheadLabor
RevenuesVariable OverheadMaterialsLaborSales CommissionsNet Income / (Loss)Fixed Overhead
Fixed OverheadNet Income / (Loss)Variable OverheadRevenuesLaborSales CommissionsMaterials
Fixed OverheadNet Income / (Loss)Sales CommissionsMaterialsVariable OverheadLaborRevenues
MaterialsRevenuesSales CommissionsNet Income / (Loss)Fixed OverheadVariable OverheadLabor		$		$		$

(Please show clearly what goes in each of the spaces to fill in) Thank you.