Pharoah Company produces golf discs, which it normally sells to retailers for ( $ 12 ) each. The cost of manufacturing 18,000 golf discs is: Pharoah also incurs ( 5 % ) sales commission ( ( $ 0.60) ) on each disc sold. Foress Corporation offers Pharoah ( $ 9,60 ) per disc for ( 4.500 ) discs. Foress would sell the discs under its own

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Pharoah Company produces golf discs, which it normally sells to retailers for  (  $ 12  ) each. The cost of manufacturing 18,000 golf discs is: Pharoah also incurs  ( 5  %  ) sales commission  ( ( $ 0.60)  ) on each disc sold. Foress Corporation offers Pharoah  (  $ 9,60  ) per disc for  ( 4.500  ) discs. Foress would sell the discs under its own brand name in foum markets not yet served by Pharoah. If Pharoah accepts the offer, it will incur a one-time fixed cost of  (  $ 6.400  ) due to the rental of imprinting machine. No sales commission will result from the special order.

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