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Circuit Masters Incorporated (CMI) is presently operating at 80% of capacity and manufacturing 128,000 units of a patented electronic component. The cost structure of the

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Circuit Masters Incorporated (CMI) is presently operating at 80% of capacity and manufacturing 128,000 units of a patented electronic component. The cost structure of the component is as follows: An Italian firm has offered to purchase 20,800 of the components at a price of $28.00 per unit, FOB CMl's plant. The normal selling price is $34.40 per component. This special order will not affect any of CMI's "normal" business. Management calculated that the cost per component is $26.10, so it is reluctant to accept this special order. Required: a. Calculate the fixed overhead per unit? b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted? Complete this question by entering your answers in the tabs below. Calculate the fixed overhead per unit? Note: Round your answer to 2 decimal places. Circuit Masters Incorporated (CMI) is presently operating at 80% of capacity and manufacturing 128,000 units of a patented electronic component. The cost structure of the component is as follows: An Italian firm has offered to purchase 20,800 of the components at a price of $28.00 per unit, FOB CMI's plant. The normal selling price is $34.40 per component. This special order will not affect any of CMl's "normal" business. Management calculated that the cost per component is $26.10, so it is reluctant to accept this special order. Required: a. Calculate the fixed overhead per unit? b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted? Complete this question by entering your answers in the tabs below. b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted

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