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Need help solving please! Shamrock Company produces golf discs, which it normally sells to retailers for $12 each. The cost of manufacturing 21,600 golf discs
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Shamrock Company produces golf discs, which it normally sells to retailers for $12 each. The cost of manufacturing 21,600 golf discs is: Shamrock also incurs 10% sales commission ( $1.20) on each disc sold. Beca Corporation offers Shamrock $6.00 per disc for 5,400 discs. Beca would sell the discs under its own brand name in foreign markets not yet served by Shamrock. If Shamrock accepts the offer, it will incur a one-time fixed cost of $6,800 due to the rental of an imprinting machine. No sales commission will result from the special order. 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.) Incremental contribution margin $ Incremental cost: Fixed cost Incremental income $ Your answer is partially correct. Should Shamrock accept the special order? Why or why not? Shamrock should the special order, as it will their net income by $ Your answer is incorrect. What assumption underlies the decision made in part (b)? The assumption underlying the decision is that current sales be affected if Shamrock accepts the offerStep by Step Solution
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