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Question 3 --/1 View Policies Current Attempt in Progress Pronghorn Company produces golf discs which it normally sells to retailers for $7 each. The cost
Question 3 --/1 View Policies Current Attempt in Progress Pronghorn Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 16,700 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 8,350 24,883 17,702 32,899 $83,834 Pronghorn also incurs 6% sales commission ($0.41) on each disc sold. McGee Corporation offers Pronghorn $4.82 per disc for 5,110 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Pronghorn. If Pronghorn accepts the offer, its fixed overhead will increase from $32,899 to $38,779 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. (Round answers to 0 decimal places, e.g. 1250. If amount decreases net income then enter the amount 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 (b) Should Pronghorn accept the special order? Pronghorn should the special order. e Textbook and Media Save for Later Attempts: unlimited Submit
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