Farrow Company reports the following annual results

Farrow Company reports the following annual results. Annual Total Contribution Margin Income Statement Sales (280,000 units) Variable costs Per Unit $15.00 $ 4,200,000 Direct materials 560,000 2.00 4.00 2.50 Direct labor Overhead 1,120,000 700,000 Contribution margin Fixed costs 6.50 1,820,000 Fixed overhead 2.00 560,000 Fixed general and administrative 1.50 420,000 Income $ 3.00 $ 840,000 The company receives a special offer for 28,000 units at $12 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 $112,000 and incremental fixed general and administrative costs of $120,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? 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) $ 0.00 0.00 $ 0 0