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Crane Company produces golf discs which it normally sells to retailers for $6 each. The...

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Accounting

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Crane Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: $8,250 24,500 Materials Labor Variable overhead Fixed overhead Total 16,500 32,800 $ 82,050 Crane also incurs 5% sales commission ($ 0.30) on each disc sold. Rudd Corporation offers Crane $ 4.40 per disc for 2.400 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Crane. If Crane accepts the offer, its fixed overhead will increase from $ 32,800 to $ 35,200 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.3. -45 or parentheses es (45). Do not leave any field blank. Enter for the amounts.) Reject Order Accept Order Net Income Effect

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