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FURY produces and sells skateboards its contribution margin income statement follows. Annual Total 5 7,000,000 Contribution Margin Income Statement For Year Ended December 31 Per

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FURY produces and sells skateboards its contribution margin income statement follows. Annual Total 5 7,000,000 Contribution Margin Income Statement For Year Ended December 31 Per Unit Sales (100,000 units) $ 70.00 Variable costs Direct materials 36.00 Direct labor 10.00 Variable overhead 14.00 Contribution margin 10.00 Fixed costs Fixed overhead 3.00 Fixed general and administrative 2.00 Income $ 5.00 3,600,000 1,000,000 1,400,000 1,000,000 300,000 200,000 $ 500,000 A potential customer offers to buy 12,000 units for $62.00 each. These sales would not affect the company's sales through its normal channels. Details of the special offer follow. Variable costs per unit would not change. Accepting the offer would require incremental fixed overhead costs of $12,000. Accepting the offer would require incremental fixed general and administrative costs of $18,000. Required 1. Compute income or loss from the special offer. 2. Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute income or loss from the special offer. (Round your "Per Unit" answers to 2 decimal places) Per Unit 62.00 $ Total 744,000 $ Special Offer Analysis Sales Variable costs Direct materials Direct labor Variable overhead 36.00 10.00 14.00 2.00 744,000 Contribution margin Fixed costs Fixed overhead Fixed general and administrative 3.00 200 Income foss) $ (3.00) 5 744,000 Required 2 >

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