25.11, 12

Farrow Company reports the following annual results. The company recelves a special offer for 48,000 units at $12 per unit. The additional sales would not affect its normal sales, Variat 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 $192,000 and incremental fixed general and administrative costs of $206,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Compute the income or loss for the special offer. Note: Round your "Per Unit" answers to 2 decimal places. Pardo Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current monthly sales of 80,000 units follow. The normal selling price of the product is $134 per unit. A new customer offers to purchase 20,000 units for $64.80 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixed general and administrative costs. The special offer would not affect its normal sales. (a) Compute the income from the special offer. (b) Should the company accept the special offer? Complete this question by entering your answers in the tabs below. Compute the income for the special offer. Note: Round your "Per Unit" answers to 2 decimal places