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Contribution Margin Income Statement Sales (260,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fized general and administrative
Contribution Margin Income Statement Sales (260,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fized general and administrative Income Per Unit $ 15.00 Annual Total $ 3,900,000 520,000 1,040,000 2.00 4.00 2.50 6.50 650,000 1,690,000 2.00 520,000 1.50 $ 3.00 390,000 $780,000 The company receives a special offer for 26,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $104,000 and incremental foxed general and administrative costs of $112,000. (a) Compute the income or loss for the special offer (b) Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income or loss for the special offer (Round your "Per Unit answers to 2 decimal places,) Sales Variable costs SPECIAL OFFER ANALYSIS Direct materials Direct labor Variable overhead Per Unit Total $ 12.00 S 312,000 2.00 52,000 4.00 104,000 2.50 65,000 Contribution margin 350 91.000 Fad costs Fed overhead Fixed general and administrative 4.00 104,000 112.000 Income Soss $ (0.50) $ (125,000) Required By
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