14C Clear Assignment 5 Chapter 7 Question 3 of 3 < 3.33/10 1 Blossom Company produces golf discs, which it normally sells to retailers for $11 each. The cost of manufacturing 20.000 golf discs is Materials $12.000 Labour 28.000 Variable overhead 20,000 Fixed overhead 45,000 Total $105.000 Blossom also incurs 5% sales commission ($0.55) on each disc sold Steering Corporation offers Blossom $8.80 per disc for 5.000 discs. Steering would sell the discs under its own brand name in foreign markets not yet served by Blossom. If Blossom accepts the offer, it will incur a one-time fixed cost of $6,100 due to the rental of an imprinting machine. No sales commission will result from the special order. 817 PM 2022-10-09