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FURY produces and sells skateboards. Its contribution margin income statement follows. Contribution Margin Income Statement For Year Ended December 31 Per Unit Sales (98,000 units)
FURY produces and sells skateboards. Its contribution margin income statement follows. Contribution Margin Income Statement For Year Ended December 31 Per Unit Sales (98,000 units) $68.00 Annual Total $ 6,664,000 Variable costs Direct materials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead 37.00 3,626,000 8.00 12.00 784,000 1,176,000 11.00 1,078,000 3.00 294,000 Fixed general and administrative Income 2.00 $6.00 196,000 $ 588,000 A potential customer offers to buy 11,800 units for $59.00 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 $11,800. . Accepting the offer would require incremental fixed general and administrative costs of $17,700. Required: 1. Compute income or loss from the special offer. 2. Should the company accept or reject the special offer? Accepting the offer would require incremental fixed overhead costs of $11,800. Accepting the offer would require incremental fixed general and administrative costs of $17,700. 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.) Special Offer Analysis Contribution margin Per Unit Income (loss) Required 2 Total
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