Levon Inc. manufactures televisions. For 2020, the company reported the following operating results while operating at 70% of plant capacity and producing 142,600 units. Sales $8,614,000 Cost of goods sold 6,406,703 Selling and administrative expenses 475,697 Net income $1,731,600 Fixed costs for the period were cost of goods sold $1,780,000, and selling and administrative expenses $254,000. In August, Levon, Inc. receives a special order for 13,000 units at $38 each from Breeland Corporation. Acceptance of the order would increase variable selling and administrative expenses $1.18 per unit because of shipping costs but would not increase fixed costs and expenses. a) Calculate Variable Cost per unit. SHOW YOUR WORK!

b) Prepare an incremental analysis report for accept or reject the special order. Round answers to the nearest whole number. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.

Should Levon Company (Accept/Reject) the special order