Exercise 16-13 (Static) Accept special sales order? LO 16-2, 16-3\ Circuit Masters Incorporated (CMI) is presently operating at 80% of capacity and manufacturing 120,000 units of a patented electronic component. The cost structure of the component is as follows:\ \ Raw materials $ 6.00 per unit\ Direct labor 6.00 per unit\ Variable overhead 8.00 per unit\ Fixed overhead $ 480,000 per year\ An Italian firm has offered to purchase 20,000 of the components at a price of $24 per unit, FOB CMIs plant. The normal selling price is $32 per component. This special order will not affect any of CMIs normal business. Management calculated that the cost per component is $24, so it is reluctant to accept this special order.\ \ Required:\ Calculate the fixed overhead per unit.\ Is the cost calculation appropriate?\ Should the offer from the Italian firm be accepted?