Need help on E20-2 only, thanks.

In making business decisions, management ordinarily considers only financial information because it is objectively determined. Decisions involve a choice among alternative courses of action. The process used to identify the financial data that change under alternative courses of action is called incremental analysis. Costs that are the same under all alternative courses of action sometimes affect the decision. When using incremental analysis, some costs will always change under alternative courses of action, but revenues will not. Variable costs will change under alternative courses of action, but fixed costs will not. Identify each statement as true or false. If false, indicate how to correct the statement. Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,000 golf discs is: Gruden also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 5,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed overhead will increase from $40,000 to $46,000 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. (b) Should Gruden accept the special order? Why or why not? (c) What assumptions underlie the decision made in part (b)? Leno Company manufactures toaster. For the first 8 months of 2014, the company reported the following operating results while operating at 75% of plant capacity: Cost of goods sold was 70% variable and 30% fixed: operating expenses were 75% variable and 25% fixed. In September, Leno Company receives a special order for 15,000 toasters at $7.60 each from Centro Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed operating expenses. (a) Prepare an incremental analysis for the special order. (b) Should Leno Company accept the special order? Why or why not