Exercise 10-13 (Algo) Special offer pricing LO P7 Farrow Company reports the following annual results. Per Unit $ 15.00 Annual Total $ 5,100,000 Contribution Margin Income Statement Sales (340,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative 2.00 4.00 2.50 6.50 680,000 1,360,000 850,000 2,210,000 2.00 1.50 680,000 510,000 $ 1,020,000 Income $ 3.00 The company receives a special offer for 34,000 units at $13 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 $136,000 and incremental fixed general and administrative costs of $146,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? Required A Required B Compute the income or loss for the special offer. (Round your "Per Unit" answers to 2 decimal places.) SPECIAL OFFER ANALYSIS Per Unit Total Contribution margin Income (loss)