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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 30,000

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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 30,000 Varlable overhead20,000 Fixed overhead 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 the offer, its fixed overhead will increas name in machine. No sales commission will result from the special order markets not yet served by Larkin. If Larkin accepts se from $40,000 to $43,000 due to the purchase of a new imprinting e-g (451 Donot leave any fheld blank. Enter O for the amounts.) Accept Order Net Income Effect 12750$ 12750 1200 Rudd Corporation offers Larkin $4.25 per disc for 3,000 dises. Rudd the offer, its fxed overhead will increase from $40,000 would sell the discs under its own brand name in foreign markets not yet served by Larkin.I Larkin accepts to $43,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order Prepare an incremental analysis for the special order. (Enter negative amounts using either a negotive sign preceding the number es-45 or parentheses es. (451 Do not leave any field blank. Enter O for the amounts) Reject Order Accept Order Net Income Effect 12750 $ Larkin : accept the special order

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