Circuit Masters Incorporated (CMI) is presently operating at 80% of capacity and manufacturing 121,000 units of a patented electronic component. The cost structure of the component is as follows:

Raw materials $ 6.10 per unit

Direct labor 6.10 per unit

Variable overhead 8.10 per unit

Fixed overhead $ 363,000 per year

An Italian firm has offered to purchase 20,100 of the components at a price of $24.50 per unit, FOB CMI's plant. The normal selling price is $32.30 per component. This special order will not affect any of CMI's "normal" business. Management calculated that the cost per component is $23.30, so it is reluctant to accept this special order.

Required:

1. Calculate the fixed overhead per unit?
2. Is the cost calculation appropriate?
3. Should the offer from the Italian firm be accepted?