Waterway Company produces golf discs, which it normally sells to retailers for $7 each. The cost of manufacturing 18,000 golf discs is: Materials Labour Variable overhead Fixed overhead Total $10,080 28.440 20,520 41,500 $100.540 Waterway also incurs 10% sales commission ($0.70) on each disc sold. Cinrich Corporation offers Waterway $5.50 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, eg. 15.25 and final answers to decimal places, eg. 5,275.) $ Incremental contribution margin Incremental cost: Fixed cost II Incremental income e Textbook and Media Should Waterway accept the special order? Why or why not? Waterway should the special order, as it will their net income by $ eTextbook and Media What assumption underlies the decision made in part (b)? The assumption underlying the decision is that current sales be affected if Waterway accepts the offer. Question 10 of 21 - 71 INI View Policies Current Attempt in Progress Bonita Inc. makes unfinished bookcases that it sells for $57. Production costs are $37 variable and $9 fixed. Because it has unused capacity, Bonita is considering finishing the bookcases and selling them for $74. Variable finishing costs are expected to be $7 per unit with no increase in fixed costs. Prepare an analysis on a per-unit basis that shows whether Bonita should sell unfinished or finished bookcases. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) Net Income Increase (Decrease) Sell Process Further $ $ $ Sales per unit Variable cost per unit Fixed cost per unit Total per unit cost $ $ $ Net income per unit The bookcases processed further