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Waterway Company produces golf discs, which it normally sells to retailers for $7 each. The cost of manufacturing 18,000 golf discs is: Waterway also incurs
Waterway Company produces golf discs, which it normally sells to retailers for $7 each. The cost of manufacturing 18,000 golf discs is: Waterway also incurs 10% sales commission ($0.70) on each disc sold. Cinrich Corporation offers Waterway $5.60 per disc for 4,500 discs. Cinrich would sell the discs under its own brand name in foreign markets not yet served by Waterway. If Waterway accepts the offer, it will incur a one-time fixed cost of $5,700 due to the rental of an 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, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) Incremental contribution margin Incremental cost: Fixed cost Incremental income $ \begin{tabular}{l} $ \\ \hline \hline \end{tabular} eTextbook and Media
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