question 3- exercise

Sandhill Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 21,700 golf discs is: Sandhill also incurs 7% sales commission ($0.49) on each disc sold. McGee Corporation offers Sandhill $4.90 per disc for 5,500 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Sandhill. If Sandhill accepts the offer, it will incur a one-time fixed cost of $5,310 due to the rental of an imprinting machine. No sales commission will result from the special order. Assume there is sufficient capacity to accommodate the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.8. -45 or parentheses e.g. (45).) e.g. -45 or parentheses e.8. (45).) (b) Should Sandhill accept the special order? Sandhill should the special order