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Item19 5.25 points Time Remaining 34 minutes 31 seconds00:34:31 Item 19 Time Remaining 34 minutes 31 seconds00:34:31 Farrow Company reports the following annual results. Contribution

Item19 5.25 points Time Remaining 34 minutes 31 seconds00:34:31 Item 19 Time Remaining 34 minutes 31 seconds00:34:31 Farrow Company reports the following annual results. Contribution Margin Income Statement Per Unit Annual Total Sales (260,000 units) $ 15.00 $ 3,900,000 Variable costs Direct materials 2.00 520,000 Direct labor 4.00 1,040,000 Overhead 2.50 650,000 Contribution margin 6.50 1,690,000 Fixed costs Fixed overhead 2.00 520,000 Fixed general and administrative 1.50 390,000 Income $ 3.00 $ 780,000 The company receives a special offer for 26,000 units at $13 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offe

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