Farrow Company reports the following annual results. Per Unit $ 15.00 Annual Total $ 7,500,000 2.00 Contribution Margin Income Statement Sales (500,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative 4.00 2.50 6.50 1,000,000 2,000,000 1,250,000 3,250,000 2.00 1.50 1,000,000 750,000 $ 1,500,000 Income $ 3.00 The company receives a special offer for 50,000 units at $13 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 $200,000 and incremental fixed general and administrative costs of $215,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special 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.) SPECIAL OFFER ANALYSIS Per Unit Total Contribution margin 0.00 0 Income (loss) $ 0.00 $ 0 Pardo Company produces a single product and has capacity to produce 165,000 units per month. Costs to produce its current monthly sales of 132,000 units follow. The normal selling price of the product is $120 per unit. A new customer offers to purchase 33,000 units for $66.60 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 Per Unit $ 12.50 15.00 14.00 17.50 15.00 $ 74.00 Costs at 132,000 Units $ 1,650,000 1,980,000 1,848,000 2,310,000 1,980,000 $ 9,768,000 (a) Compute the income from the special offer. (1) Should the company accept the special offer? Complete this question by entering your answers in the tabs below. Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.) SPECIAL OFFER ANALYSIS Per Unit Total Variable costs 0.00 0 Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income $ 0.00 $ 0 Haver Company currently pays an outside supplier $37 per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method 1 for making the part would require direct materials of $16 per unit, direct labor of $19 per unit, and incremental overhead of $3 per unit. Method 2 for making the part would require direct materials of $16 per unit, direct labor of $13 per unit, and incremental overhead of $7 per unit. Required: 1. Compute the cost per unit for each alternative method of making the part. 2. Should Haver make or buy the part? If Haver makes the part, which production method should it use? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the cost per unit for each alternative method of making the part. Cost per unit Make with Method 1 Make with Method 2 Buy Cost per unit $ 0 $ 0 $ 0