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Sunland Company produces golf discs which it normally sells to retailers $7 each. The cost of manufacturing 19,100 golf discs is: Materials $ 9,550 Labor 29,414 Variable overhead 20,437 Fixed overhead 38.009 Total $97,410 Sunland also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Sunland $4.90 per disc for 6,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Sunland. If Sunland accepts the offer, it will incur a one-time fixed cost of $6,170 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 eg. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ $ Materials Labor Variable overhead Cost of equipment rental Net income $ $ (b) Should Sunland accept the special order? Sunland should the special order Pharoah Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (347,200 units) $4,380,000 Cost of goods sold 2,589,120 Gross profit 1,790,880 Operating expenses 837,620 Net income $953,260 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Pharoah receives a special order for 18,300 toasters at $7.67 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, eg. 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 $ $ $ Cost of goods sold Operating expenses Net income $ $ $ (b) Should Pharoah accept the special order? Pharoah Company the special order

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