Exercise $23-14($Algo$)$ Special offer pricing LO P$7$

Pardo Company produces a single product and has capacity to produce $135,000$ units per month. Costs to produce its

current monthly sales of $108,000$ units follow. The normal selling price of the product is $$110$ per unit. A new customer

offers to purchase $27,000$ units for $$62\mathrm{.}10$ per unit. If the special offer is accepted, there will be no additional fixed

overhead and no additional fixed general and administrative costs. The special offer would not affect its normal sales.

$($a$)$ Compute the income from the special offer.

$($b$)$ Should the company accept the special offer?

Complete this question by entering your answers in the tabs below.

A

B

Compute the income for the special offer. $($Round your "Per Unit" answers to $2$ decimal

places.$)$