HW CH 23

JART manufactures and selis underwater markers, Its contribution margin income statement follows. A potential customer offers to buy 57,000 units for $2.90 each. These soles would not affect the company's sales through its normal channels. Details about the special offer follow. - Direct materials cost per unit and variable overheod cost per unit would not change: - Direct labor cost per unit would be $0.50 because the offer would require overtime pay. - Accepting the offer would require incremental fixed general and administrative costs of $5,700. - Accepting the offer would Pequire no incremental fixed overthead costs. Required: 1. Compute income 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. 2. Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Compute income from the special offer. (Round your "Per Unit" answers to 2 decimal places.)