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Wildhorse Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,600 golf discs is: Materials Labor
Wildhorse Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,600 golf discs is: Materials Labor $ 10,584 28,812 Variable overhead 19,796 Fixed overhead 39,984 Total $99,176 Wildhorse also incurs 8% sales commission ($0.56) on each disc sold. McGee Corporation offers Wildhorse $4.80 per disc for 5,600 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Wildhorse. If Wildhorse accepts the offer, it will incur a one-time fixed cost of $6,150 due to the rental of an imprinting machine. No sales commission will result from the special order. Assume there is sufficient capacity to accommodate the special order. (a) 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).)
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