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urgent !! Gruden Company produces golf discs, which it normally sells to retailers for $10 each. The cost of manufacturing 19.500 golf discsis: Materials $9.555
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Gruden Company produces golf discs, which it normally sells to retailers for $10 each. The cost of manufacturing 19.500 golf discsis: Materials $9.555 Labour 30.030 22,035 Variable overhead Fred overhead 43.000 Total $104,620 Gruden also incurs 10% sales commission (51.00) on each disc sold. McGee Corporation offers Gruden $5.00 per disc for 4.875 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 $43.000 to $48.200 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, es 15.25 and final answers to decimal places, e$. 5.275) Incremental contribution margin 8969 Less Incremental cost: Foxed cost 5200 Incremental income 3769 Should Gruden accept the special order? Why or why not? Gruden should act the special order, as it will Increase their net income by 5 eTextbook and Media Question Part Score 2.01/3 Your answer is incorrect What assumption underlies the decision made in part (b)? The assumption underlying the decision is that current sales will not be affected il Gruden accepts the offer. e Textbook and Media Act indow Step by Step Solution
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