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Exercise 23-13 (Algo) Special offer pricing LO P7 Farrow Company reports the following annual results. The company recelves a special offer for 24,000 units at
Exercise 23-13 (Algo) Special offer pricing LO P7 Farrow Company reports the following annual results. The company recelves a special offer for 24,000 units at $12 per unit. The additional sales would not affect lts normal sales. Varlable costs per unlt would be the same for the special offer as they are for the normal units. The speclal offer would require incremental fixed overhead of $96,000 and Incremental fixed general and administrative costs of $103,000. (a) Compute the Income or loss for the speclal offer. (b) Should the company accept or reject the speclal offer? Complete this question by entering your answers in the tabs below. Compute the income or loss for the special offer. (Round your "Per Unit" answers to 2 decimal places.)
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