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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 $9,500
Sunland Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $9,500 Labor 28,250 Variable overhead 18,750 Fixed overhead 37,600 Total $94,100 Sunland also incurs 5% sales commission ($0.30) on each disc sold. Rudd Corporation offers Sunland $4.50 per disc for 2,800 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 $37,600 to $40,400 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). Do not leave any field blank. Enter O for the amounts.)
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