06.04.2022, 22:35 Question 11 - Chp 10 - Assigned Problems - Connect 1 av 2 Problems Saved Help Save & Exit Submit Check my work 11 Farrow Company reports the following annual results. Contribution Margin Income Statement Per Unit Annual Total 2.5 Sales (150,000 units) $ 15.00 $ 2,250,000 points Variable costs Direct materials 2.00 300,000 Direct labor 4.00 600, 000 Overhead 2.50 375, 000 eBook Contribution margin 6.50 975, 000 Fixed costs Hint Fixed overhead 2.00 300,000 Fixed general and administrative 1.50 225,000 Print Income $ 3.00 $ 450,000 References The company receives a special offer for 15,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $60,000 and incremental fixed general and administrative costs of $4,500. (a) Compute the income or loss for the special offer. (b) Should the company accept the special offer? Mc Graw https://ezto mbeducation.com/ext/map/index. html?_con-con&external_browser=08:launchUrl=http:%253A%2521%252Fblackboard. mercyhurst.edu%252Fwebapps... 1 06.04.2022, 22:36 Question 11 - Chp 10 - Assigned Problems . Connect Chp 10 - Assigned Problems Saved Help Save & Exit Submit Check my work 112 av 2 Mc Graw http://ezto.mbeducation.com/ext/map/index. html?_con=con&external_browser=0&:launchUrl=http:%253A%2521%252Fblackboard.mercyhurst.edu%252Fwebapps... 1/1 06.04.2022, 22:36 Question 11 - Chp 10 - Assigned Problems . Connect Chp 10 - Assigned Problems Saved Help Save & Exit Submit Check my work 11 2.5 points eBook Hint Print Complete this question by entering your answers in the tabs below. References Required A Required B Compute the income or loss for the special offer. (Round your "Per Unit" answers to 2 d SPECIAL OFFER ANALYSIS Per Unit Total Sales $ 12.00 Variable costs Direct materials 2.00 Direct labor 4.00 Variable overhead 2.50 Contribution margin 3.50 Fixed costs Fixed overhead 4.00 Fixed general and administrative Income (loss) $ (0.50) $ Hill http:/exto.mbeducation.com/ext/map/index.html?_con=condexternal_browser=0&launchUrl=https%253A%252P%252Fblackboard mercyhurst.edu%252Fwebapps... 1/1