Question

Exercise 6 Golf Co made 3,000 novelty golf balls last year. The balls normally sell for $7 each. The costs per ball were as f
Complete the table to determine the incremental profit on the order. Accept Reject Sales x x Direct materials x x Direct labo
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Answer #1
Accept Reject
Sales $           26,400 $           21,000
Direct materials $             3,900 $             3,000
Direct labor $             1,950 $             1,500
Overhead $           13,080 $           12,000
Selling expenses $             2,490 $             1,500
Profit $             4,980 $             3,000
Incremental profit on the order $             1,980
Should Golf Co accept the order YES
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