Oriole Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,100 golf discs is:

Materials		$ 10,653
Labor		29,346
Variable overhead		20,100
Fixed overhead		41,205
Total		$101,304

Oriole also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Oriole $4.90 per disc for 5,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Oriole. If Oriole accepts the offer, it will incur a one-time fixed cost of $5,690 due to the rental of an imprinting machine. No sales commission will result from the special order. Assume there is sufficient capacity to accommodate the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		Reject Order		Accept Order		Net Income Increase (Decrease)
Revenues		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Materials		enter a dollar amount		enter a dollar amount		enter a dollar amount
Labor		enter a dollar amount		enter a dollar amount		enter a dollar amount
Variable overhead		enter a dollar amount		enter a dollar amount		enter a dollar amount
Cost of equipment rental		enter a dollar amount		enter a dollar amount		enter a dollar amount
Net income		$enter a total net income amount		$enter a total net income amount		$enter a total net income amount

(b) Should Oriole accept the special order?

Oriole should select an option accept/reject the special order .