PLEASE HELP WITH THIS ACCOUNTING QUESTION Gruden Company produces golf discs which it normally sells...
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PLEASE HELP WITH THIS ACCOUNTING QUESTION
Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is: Materials $ 10,100 Labor 29,088 Variable overhead 22,018 Fixed overhead 39,794 Total $101,000 Gruden also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Gruden $4.84 per disc for 4,820 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 $44,824 due to the purchase of a new imprinting machine. No sales commission will result from the special order.
reject order
accept order
net income increase(decrease)
reveues
materials
labor
variable overhead
fixed overhead
sales commision
net income
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