Your answer is partially correct. Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 9,090 29,290 19,392 39.794 $97,566 Gruden also incurs 8% sales commission (50.56) on each disc sold McGee Corporation offers Gruden $4.80 per disc for 4.700 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 $39.794 to $45,304 due to the purchase of a new imprinting machine. No sales commission will result from 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) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the numbered -45 or parentheses es (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues 0 22610 $ 22610 Materials 0 2133 2133 Labor 6873 -6873 Variable overhead 44550 -4550 Fixed overhead 0 5510 3510 Sales commissions 0 Net income $ 0 $ 3544 $ 3544 (b) Should Gruden accept the special order? Gruden should accept the special order