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A potential customer offers to buy 63,000 units for $3.60 each. These sales would not affect the company's sales through its normal channels. Details about

A potential customer offers to buy 63,000 units for $3.60 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow.

Direct materials cost per unit and variable overhead cost per unit would not change. Direct labor cost per unit would be $0.61 because the offer would require overtime pay. Accepting the offer would require incremental fixed general and administrative costs of $6,300. Accepting the offer would require no incremental fixed overhead costs.

Required:

  1. Compute income from the special offer.
  2. Should the company accept or reject the special offer?
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JART manufactures and sells underwater markers. its contribution margin income statement follows. A potential customer offers to buy 63,000 units for $3.60 eoch. These sales would not affect the company's sales through its normal channels. Detals about the special offer follow. - Direct materials cost per unit and variable overhead cost per unit would not change - Direct labor cost per unit would be $0.61 because the offer would require overtime poy. - Accepting the offer would require incremental foxed general and administrative costs of $6,300 - Accepting the offer would require no incremental foxed overhead costs. Required: 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? Answer is not complete. Complete this question by entering your answers in the tabs below. Compute income from the special offer. Note: Round your "Per Unit" answers to 2 decimal places

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