Question 1 of 4 View Policies Current Attempt in Progress -/10 Sheridan Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $11,500 Labor 34,250 Variable overhead 22,750 Fixed overhead 45,600 Total $114,100 Sheridan also incurs 5% sales commission ($0.30) on each disc sold. Rudd Corporation offers Sheridan $4.50 per disc for 3,400 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Sheridan. If Sheridan accepts the offer, its fixed overhead will increase from $45,600 to $49,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order.