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9 Direct materials Direct labor Variable overhead Fixed overhead Fixed general and administrative Totals $ 12.50 15.00 15.00 17.50 14.00 $ 74.00 $ 1,500,000 1,800,000
9 Direct materials Direct labor Variable overhead Fixed overhead Fixed general and administrative Totals $ 12.50 15.00 15.00 17.50 14.00 $ 74.00 $ 1,500,000 1,800,000 1,800,000 2,100,000 1,580,000 $ 8,880,000 15 points (a) Compute the income from the special offer. (b) Should the company accept the special offer? eBook Complete this question by entering your answers in the tabs below. Hint Required A Required B Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.) Print SPECIAL OFFER ANALYSIS Per Unit Total References Variable costs Contribution margin Fixed costs Find overhead Fixed general and administrative Income Required) 9 15 points Pardo Company produces a single product and has capacity to produce 150,000 units per month. Costs to produce its current monthly sales of 120,000 units follow. The normal selling price of the product is $104 per unit. A new customer offers to purchase 30,000 units for $66.60 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. Costs at 120,000 Per Unit Unita Direct materiala $ 12.50 $1,500,000 Direct labor 15.00 1,000,000 variable overhead 15.00 1,800,000 Fixed overhead 17.50 2,100,000 Fixed general and administrative 14.00 1,680,000 Totale 574.00 $ 8,080,000 (a) Compute the income from the special offer. (b) should the company accept the special offer? ok Hint Complete this question by entering your answers in the tabs below. required A Required Should the company accept the social offer? Should the company at the offer?
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