JART manufactures and sells underwater markers. Its contribution margin income statement follows. For Year Ended December 31 Sales (520,000 units) Variable costs Direct materials Direct labor Contribution Margin Income Statement Per Unit $ 7.00 Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income 1.56 0.54 0.70 4.20 0.20 0.15 $ 3.85 Annual Total $ 3,640,000 A potential customer offers to buy 62,000 units for $3.80 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow. 811,200 280,800 364,000 2,184,000 Direct materials cost per unit and variable overhead cost per unit would not change. Direct labor cost per unit would be $0.72 because the offer would require overtime pay. Accepting the offer would require incremental fixed general and administrative costs of $6,200. Accepting the offer would require no incremental fixed overhead costs. Required: 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? 104,000 78,000 $ 2,002,000

A potential customer offers to buy 62,000 units for $380 each. These sales would not affect the company's sales through its normal channels. Detalls about the special offer follow - Direct materials cost per unit and variable overhead cost per unit would not change. - Direct labor cost per unit would be $0.72 because the offer would require overtime pay - Accepting the offer would require incremental fixed general and administrative costs of $6,200 - Accepting the offer would require no incremental fixed overhead costs. Required: 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? Compute income from the special offer. Note: Round your "Per Unit" answers to 2 decimal places. 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. Should the company accept or reject the special offer? Should the company accept or reject the special offer