Metlock Company produces golf discs, which it normally sells to retailers for $11 each. The cost of manufacturing 18,000 golf discs is: Materials Labour Variable overhead Fixed overhead Total $10,080 28,080 19,440 45,000 $102,600 Metlock also incurs 10% sales commission ($1.10) on each disc sold. SUPPORT Marx Corporation offers Metlock $6.60 er disc for 4.500 discs. Marx would sell