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Exercise 21-2 Gruden Company produces golf discs which it normally sells to retailers for $7...

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Exercise 21-2 Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 17,800 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 8,366 25,988 17,266 35,600 $87,220 Gruden also incurs 7% sales commission ($0.48) on each disc sold McGee Corporation offers Gruden $4.81 per disc for 5,910 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 $35,600 to $40,250 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. (Round computations for per unit cost to 4 decimal places, e.g. 15.2500 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. 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 Materials Labor Variable overhead Fixed overhead Sales commissions Net income Should Gruden accept the special order? Gruden should the special order

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