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should the accept the special order? Blossom Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000
should the accept the special order?
Blossom Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $ 10,250 30.500 Labor Variable overhead Fixed overhead 20.500 40,900 $ 102,050 Total Blossom also incurs 5% sales commission ($ 0.30) on each disc sold. Rudd Corporation offers Blossom $ 4.40 per disc for 3,000 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Blossom. If Blossom accepts the offer its fuced overhead will increase from $ 40,800 to $ 43,800 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 -45 or parentheses t.s. (45). Do not leave any field blank. Enter for the amounts.) res Reject Order Accept Order Net Income Effect Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg 45 or parentheses es.(45) Do not leave any field blank. Enter for the amounts.) Reject Order Accept Order Net Income Effect $ > > $ Textbook and Media Step by Step Solution
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