Exercise 20-2 Your answer is partially correct. Try again. Gruden Company produces golf discs which...
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Exercise 20-2 Your answer is partially correct. Try again. Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 22,200 golf discs is: Materials Labor Variable overhead 24 Fixed overhead Total 11,100 33,966 ,198 45,066 $114,330 Gruden also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Gruden $4.89 per disc for 4,680 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 $45,066 to $50,726 due to the purchase of a new imprinting machine. No sales commission will result from the special orden Prepare an incremental analysis for the special order. (Round answers to O decimal places, e.g. 1250. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues 32,7 22,885.20 (9,874.8 Materials 2,3 2,340.0
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