A company sells citrus fruit from its website. Protecting the fruit during shipping is critical to the company's success. Accordingly, the company fabricates its own shipping containers. The company ships 1,450,000 containers of fruit annually. Total costs to fabricate that many containers are provided at left. A major paper products company has offered to supply all of the containers that the company needs at a price of $1.67 per container. What will be the effect on pretax income If the company accepts this offer? Show your work. Volume Direct materials Direct labor Variable overhead Fixed overhead Total 1,450,000 containers $ 516,000 $ 960,000 $ 1,068,000 $ 772,000 $ 3,316,000 Offer price/container $ 1.67