Exercise 23-14 (Algo) Special offer pricing LO P7 Pardo Company produces a single product and has capacity to produce 120,000 units per month. Costs to produce its current monthly sales of 96,000 units follow. The normal selling price of the product is $124 per unit. A new customer offers to purchase 24,000 units for $63.90 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. Direct materials Direct labor Variable overhead Fixed overhead Fixed general and administrative Totals Costs at 96,000 Units $ 1,200,000 Per Unit $12.50 15.00 1,440,000 11.00 1,056,000 17.50 1,680,000 15.00 $71.00 1,440,000 $ 6,816,000 (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. Required A Required B Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.) SPECIAL OFFER ANALYSIS Per Unit Total Required A Required B Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.) Vanable costs SPECIAL OFFER ANALYSIS Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Total Required B > www < Prev 23 of 23 Next