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Materials $8,058 Labor 22,910 Variable overhead 15,800 Fixed overhead 31,758 Total $78,526 Gruner also incurs 6% sales commission ($0.41) on each disc sold. Travis Corporation offers Gruner $4.87 per disc for 4,700 discs. 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 from $31,758 to $37,229 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Attachments
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