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Please Help Collumber Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 17.800 golf discs is: Materials
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Collumber Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 17.800 golf discs is: Materials $ 8,366 Labor 25.988 Variable overhead 17 266 Fixed overhead 35,600 Total $87.220 Cullumber also incurs 7% sales commission ($0.49) on each disc sold McGee Corporation otters Cullumber $4.80 per disc for 5.900 discs. McGee would sell the dises under its own brand name in foreign markets not yet served by Cullumber. If Cullumber accepts the offer it will incur a one-time foed cost of $4.650 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 notive in preceding the number 45 or parentheses (451) Reject Order Accept Order Net Income Increase (Decrease) Revenues 22120 220 Materials Labo Prepare an incrementar analysis for the special order jenter negative amounts using either a negative sign preceding the number eg. 45 or parentheses eg (45)) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ 0 $ 22320 $ 2232d Materials 0 Labor 0 Variable overhead O Cost of equipment rental 0 $ $ Net Income 16) Should Cullumber accept the special order? Cullumber should accept the special order Step by Step Solution
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