the mittens thl gloves and gloves and Therefore, the of the aliminate mi analysis for E7.2 Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,000 golf discs is: 10,000 Materials 30,000 Labor Variable overhead 20,000 40,000 Fixed overhead Total $100,000 Gruden also incurs 5% sales commission ($0.35) on each disc sol the McGee Corporation offers Gruden $4.80 per disc for 5,000 discs. would sell discs under its own brand name McGee IfGruden accepts in foreign markets not yet served by Gruden. of a the fixed overhead will increase from $40,000 to S46,000 due to the urchase new imprinting machine. No sales commission will result from the special order