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Metlock Company produces golf discs, which it normally sells to retailers for $11 each. The cost of manufacturing 18,000 golf discs is: Metlock also incurs
Metlock Company produces golf discs, which it normally sells to retailers for $11 each. The cost of manufacturing 18,000 golf discs is: Metlock also incurs 10% sales commission (\$1.10) on each disc sold. Marx Corporation offers Metlock $6.60 per disc for 4,500 discs. Marx would sell the discs under its own brand name in foreign markets not yet served by Metlock. If Metlock accepts the offer, it will incur a one-time fixed cost of $4,800 due to the rental of an imprinting machine. No sales commission will result from the special order. (a) 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.)
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