JART manufactures and sells underwater markers. Its contribution margin income statement follows.

Contribution Margin Income StatementFor Year Ended December 31Per UnitAnnual TotalSales (530,000 units)$ 7.00$ 3,710,000Variable costs Direct materials1.57832,100Direct labor0.43227,900Variable overhead0.60318,000Contribution margin4.402,332,000Fixed costs Fixed overhead0.20106,000Fixed general and administrative0.1579,500Income$ 4.05$ 2,146,500

A potential customer offers to buy 63,000 units for $3.60 each. These sales would not affect the companys sales through its normal channels. Details 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 $0.61 because the offer would require overtime pay.
• Accepting the offer would require incremental fixed general and administrative costs of $6,300.
• 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?

Complete this question by entering your answers in the tabs below. Compute income from the special offer. Note: Round your "Per Unit" answers to 2 decimal places. \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Special Offer Analysis } & & \\ \hline & & \\ \hline & & \\ \hline Contribution margin & & \\ \hline & & \\ \hline Fixed overhead & & \\ \hline Fixed general and administrative & & \\ \hline Income (loss) & & \\ \hline \end{tabular} Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should the company accept or reject the special offer? Should the company accept or reject the special offer