Gruner also incurs 7 sales commission 048 on each disc

Reference no: EM13601549

Gruner Co. produces golf discs which it normally sells to retailers for $6.92 each. The cost of manufacturing 20,100 disc is :

Materials $10,251
Labor 30,954
Variable overhead 20,301
Fixed overhead 39,396
100,902

Gruner also incurs 7% sales commission ($0.48) on each disc. Travis Corporation offers Gruner $4.97 per disc for 5,800 disc. Travis would sell the discs under its own brand name in foreign markets not yet served by Gruner. If Gruner accepts the offer its fixed overhead will increase $39,396 to 44,095 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.

Reject Accept order Net income
Revenues
Materials
Labor
Variable overhead
Fixed overhead
Sales commission
Net income
Should Gruner accept the special order?

Reference no: EM13601549

Questions Cloud

Blt produces plastic that is used for injection molding : blt produces plastic that is used for injection molding applications such as gears for small motors. in 2012 the first

Tracy owns a nondepreciable capital asset held for : tracy owns a nondepreciable capital asset held for investment. the asset was purchased for 250000 six years earlier and

Sweater division manufactures sweaters the buttons used in : sweater division manufactures sweaters. the buttons used in production are purchased from an outside supplier at a cost

A 748 g sample of copper at 1432degc is added to an : question a 74.8 g sample of copper at 143.2degc is added to an insulated vessel containing 165 ml of glycerol c3h8o3 l

Gruner also incurs 7 sales commission 048 on each disc : gruner co. produces golf discs which it normally sells to retailers for 6.92 each. the cost of manufacturing 20100 disc

Air is at 20 degree c and has a free stream velocity of u : a thin-flat plate having a length of l 10 cm is heated by a constant-heat flux from the bottom and cooled by an air

Aders inc has 5000 shares of 5 100 par value cumulative : anders inc. has 5000 shares of 5 100 par value cumulative preferred stock and 20000 shares of 1 par value common stock

How might air eagle implement price discrimination that is : airline pricing considerations other than cost in pricing. air eagle is about to introduce a daily round-trip flight

Question how much heat is released when a mixture : question how much heat is released when a mixture containing 23.0 g cs2 and 23.0 g cl2 reacts by the following

User Account

All Pages