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Question 2 of 8 2.84/6 III View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. Sheridan Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 18,300 golf discs is: Materials $ 9,333 Labor 26,718 Variable overhead 19,032 Fixed overhead 37,149 Total $92,232 Sheridan also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Sheridan $4.80 per disc for 5,600 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Sheridan. If Sheridan accepts the offer, it will incur a one-time fixed cost of $4,910 due to the rental of an imprinting machine. No sales commission will result from the special order. Assume there is sufficient capacity to accommodate 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 narentheses em (451) 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 Order Accept Order Net Income Increase (Decrease) Revenues $ i $ 26855 $ 26855 Materials i 2871 -2871 Labor i 8220 -8220 Variable overhead i 5855 -5855 Cost of equipment rental i 4910 i -4910 i Net income $ i 4999 $ 4999 (b) Should Sheridan accept the special order? Sheridan should accept the special order

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