Question 1 of 4 -/5 View Policies Current Attempt in Progress Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20.000 golf discsks: Materials $ 10,000 Labor 30,000 Variable overhead 20,000 Fixed overhead 40.000 Total $100,000 Gruden also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Gruden 54 80 per disc for 5.000 discs. McGee would sell the discs under its own brand name in forelen markets not yet served by Gruder. If Gruden accepts the offer. Its fixed Overhead will increase from $40,000 to $46.000 due to the purchase of a new imprinting machine. No sales commission will result from the special order Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number 3.-45 or parentheses es (451) Net Income ... Reject Order Accept Order Net Income Increase (Decrease) Revenues 0 Materials Labor Variable overhead Fixed overhead Sales commissions O Net income $ $ $ (b) Should Gruden accept the special order? Gruden should accept the special order tv Pa $ - 4 3 96 5 6 7 8 9 0 E R T Y U 0