Integrated Masters Inc. (IMI) is presently operating at 80% of capacity and manufacturing 127,000 units of a patented electronic component. The cost structure of the component is as follows: Raw materials Direct labor Variable overhead Fixed overhead $ 6.70 per unit 6.70 per unit 8.70 per unit $457,200 per year An Italian firm has offered to purchase 20,700 of the components at a price of $27.5 per unit, FOB IMI's plant. The normal selling price is $34.1 per component. This special order will not affect any of IMI's "normal" business. Management calculated that the cost per component is $25.7, so it is reluctant to accept this special order. Required: a. Calculate the fixed overhead per unit? b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted?