Question 3 Your answer is partially correct. Try again. Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 24,200 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 12,342 36,542 25,894 47,916 $122,694 Gruden also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 4,800 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed overhead will increase from $47,916 to $53,006 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (a) 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).) 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).) Reject Order Accept Order Net Income Increase (Decrease) Revenues 22992 22992 Materials -2458 -2458 Labor -7278 -7278 Variable overhead -5158 -5158 Fixed overhead -5090 -5090 Sales commissions Net income 3008 3008