Wildhorse Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials Labor Variable overhead $12,250 36,500 24,500 Fixed overhead 48,800 Total $122,050 Wildhorse also incurs 5% sales commission ($0.30) on each disc sold. Rudd Corporation offers Wildhorse $4.40 per disc for 3,600 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Wildhorse. If Wildhorse accepts the offer, its fixed overhead will increase from $48,800 to $52,400 due to the purchase of a new imprinting machine. No sales commission will result from the special order.