Pardo Company produces a single product and has capacity to produce 105,000 units per month. Costs to produce its current monthly sales of 84,000 units follow. The normal selling price of the product is $128 per unit. A new customer offers to purchase 21,000 units for $63.00 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixed general and administrative costs. The special offer would not affect its normal sales. Direct materials Direct labor Per Unit $12.50 15.00 12.00 17.50 13.00 $ 70.00 Variable overhead Fixed overhead Fixed general and administrative Totals (a) Compute the income from the special offer. (b) Should the company accept the special offer? Costs at 84,000 Units $ 1,050,000 1,260,000 1,008,000 1,470,000 1,092,000 $ 5,880,000 Note: Round your "Per Unit" answers to 2 decimal places. SPECIAL OFFER ANALYSIS Variable costs Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Total 0.00 0 $ 0.00 $