Wildhorse Company produces golf discs which it normally sells to retailers for $6 each. The...
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Wildhorse Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Wildhorse also incurs 5% sales commission ({0.30) on each disc sold. Rudd Corporation ofters Wildhorse $4,40 per disc tor 3,600 discs. Rudd would sell the dises under its own brand name in foreigr markets not served ty Wildhorse. If Wildhorse accepts the offer, its fored overfead will increase from $48,800 to $52400 due to the purchase of a new imprinting machine. No sales commission wil result trom the special order. Variabic Overhead Sales Commitsions Fioed Overhead I Revenues Net income / (Los) 3
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