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

 

Transcribed Image Text:

Cullumber Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials Labor Variable overhead Fixed overhead Total $12,750 38,500 25,500 51,200 $127,950 Cullumber also incurs 5% sales commission ($0.30) on each disc sold. Rudd Corporation offers Cullumber $4.60 per disc for 3,800 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Cullumber. If Cullumber accepts the offer, its fixed overhead will increase from $51,200 to $55,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order. < > ← Unit VII Lab Assignment Question 19 of 20 (a) I < Save for Later eTextbook and Media education.wiley.com W NWP Assessment Player Ul Application Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) Reject Order LA +A Accept Order -/5 Net Income Effect Attempts: 0 of 3 used ||| Submit Answer : + Cullumber Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials Labor Variable overhead Fixed overhead Total $12,750 38,500 25,500 51,200 $127,950 Cullumber also incurs 5% sales commission ($0.30) on each disc sold. Rudd Corporation offers Cullumber $4.60 per disc for 3,800 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Cullumber. If Cullumber accepts the offer, its fixed overhead will increase from $51,200 to $55,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order. < > ← Unit VII Lab Assignment Question 19 of 20 (a) I < Save for Later eTextbook and Media education.wiley.com W NWP Assessment Player Ul Application Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) Reject Order LA +A Accept Order -/5 Net Income Effect Attempts: 0 of 3 used ||| Submit Answer : +

Answer rating: 100% (QA)

To prepare an incremental analysis for the special order we need to compa... View the full answer