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Question 9 Gruden Company produces golf discs which it normally sells to retailers for 57 each. The cost of manufacturing 23,600 golf discs is: Materials

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Question 9 Gruden Company produces golf discs which it normally sells to retailers for 57 each. The cost of manufacturing 23,600 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 12,744 36,344 24,308 48,144 $121,540 Gruden also incurs 7% sales commission ($0.49) on each disc sold. McGee Corporation offers Gruden $4.90 per disc for 5,100 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 548,144 to $52,714 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (a) 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 Materials Labor Variable overhead Fixed overhead Sales commissions Net income (b) Should Gruden accept the special order? Gruden should the special order, Click If you would like to Show Work for this question: Open Show Work

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