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Pharoah Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $11,250
Pharoah Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $11,250 Labor 33,500 Variable overhead 22,500 Fixed overhead 44,800 Total $112.050 Pharoah also incurs 5% sales commission ($0.30) on each disc sold. Rudd Corporation offers Pharoah $4.40 per disc for 3,300 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Pharoah. If Pharoah accepts the offer, its fixed overhead will increase from $44,800 to $48,100 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Prepare an inc mental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg 45 or parentheses (45). Do not leave any field blank. Enter O for the amounts.)
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