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Please show all work! Woods Company produces golf discs, which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs
Please show all work!
Woods Company produces golf discs, which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 10,000 30,000 20.000 40.000 $100.000 Woods also incurs 5% sales commission ($0.30) on each disc sold. Molinari Corporation offers Woods $4.25 per disc for 3,000 discs. Molinari would sell the discs under its own brand name in foreign markets not yet served by Woods. If Woods accepts the offer, its fixed overhead will increase from $40,000 to $43,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Required a. Prepare an incremental analysis for the special order. b. Should Woods accept the special order? Why or why not? c. If Woods accepts the special order, since they have capacity to do so, what is the primary non-financial consideration they must makeStep by Step Solution
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