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Please I need healp to prepare an incremental analysis for the special order. Thank you Exercise 7-2 (Part Level Submission) Gruden Company produces golf discs
Please I need healp to prepare an incremental analysis for the special order.
Thank you
Exercise 7-2 (Part Level Submission) Gruden Company produces golf discs which it normally sells to retailers for $7.07 each. The cost of manufacturing 24,500 golf discs is: Materials Labor Variable overhead Fixed overhead Total $13,475 36,015 24,500 48,755 $122,745 Gruden also incurs 6% sales commission ($0.42) on each disc sold McGee Corporation offers Gruden $5 per disc for 5,800 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 $48,755 to $54,050 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. (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 Materials Labor Variable overhead Fixed overhead Sales commissions Net income Click if you would like to Show Work for this question: Open Show Work
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