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Question 6 --/1 View Policies Current Attempt in Progress Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost
Question 6 --/1 View Policies Current Attempt in Progress Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,000 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 6,750 21,000 14.250 29.250 $71.250 Gruden also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 4.500 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed overhead will increase from $29.250 to $33,750 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 e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues 21600 21600 Materials 1260 1260 Labor Variable overhead Fixed overhead Sales commissions Net income S
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