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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 Annual Total Sales
FURY produces and sells skateboards. Its contribution margin Income statement follows. Contribution Margin Income Statement For Year Ended December 31 Per Unit Annual Total Sales (83,880 units) $ 53.ee $ 4,399,800 Variable costs Direct materials 23.ee 1,989,880 Direct labor 9.ee 747.000 Variable overhead 11.69 913,680 Contribution margin 18.00 830.889 Fixed costs Fixed overhead 3.ee 249,880 Fixed general and administrative 2.ee 166,880 Income $ 5.60 $ 415,880 A potential customer offers to buy 10.300 units for $45.00 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 $10,300. Accepting the offer would require Incremental fixed general and administrative costs of $15.450. 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 Per Unit Total Contribution margin 0.001 0 Income (loss) S 0.00 $
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