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Fxercise 12-2 Culver Company produces golf discs which It normally sells to retailers for $7...

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Accounting

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Fxercise 12-2 Culver Company produces golf discs which It normally sells to retailers for $7 each. The cost of manufacturing 19,500 golf discs is: Materials Labor Variable overhead 19,305 Fixed overhead Total s 8,775 30,225 38,415 96,720 Culver also incurs 3% sales commission ($0.55) on each disc sold. Culver accepts the D fer, its fixed overhead wil increas rom $39.4 15 to $44 725 due to the purchase ofa McGee Corporation offers Culver 54.77 per disc or 4,920 osc McGee would sell he discs under its n brand name iri oreic n markets not yet served bv Culver. [ new imprinting machine. No sales commissian will result frem tha special order. Prepare an incremental analysis for the special order. (Round amsrers to 0 decinal places, e.g. 1250. Il amount decreases net income then enter the amount using either a negative sion preceding the number e.o.-45 or parentheses e.g. (45). Reject Order Accept Order Net Income Increase (Decrease) Materials Labor Varlable overhead Fixed averhead Sales commissions Nct income Should Culver accept the special order? Culver should tha special order

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