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Sunland Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials Labor
Sunland Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials Labor Variable overhead $11,500 34,750 23,250 Fixed overhead 46,400 Total $115,900 Sunland also incurs 5% sales commission ($0.30) on each disc sold. Rudd Corporation offers Sunland $4.40 per disc for 3,400 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Sunland. If Sunland accepts the offer, its fixed overhead will increase from $46,400 to $49,800 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.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) eTextbook and Media Save for Later Reject Order $ $ $ Accept Order $ Net Income Effect Attempts: 0 of 3 used Submit Answer
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