Question 2 Gruden Company produces golf discs which it normally sells to retailers far $7...
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Question 2 Gruden Company produces golf discs which it normally sells to retailers far $7 each. The cost of manufacturing 23,GOD golf discs is: Materials $12,036 Labor 35,400 Variable overhead 23,126 Fixed overheed 47,200 Tatal $117,764 Gruden also incurs 8% sales commission (50.56) on each disc sold. McGee Corporation offers Gruden $4.90 per disc for 4,900 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. Ir Gruden accepts the offer, its fixed overhead will increase from $47,200 to $53,700 due to the purchase of a new imprinting machine. No sales commission will result from the special ander. 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).) Reject Accept Order Net Income Increase (Decrease) Order Revenues Materials Labar Variable averhead Fixed overhead Sales commissions Net Income Should Gruden accept the special order? Gruden should the special arder
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