Pardo Company produces a single product and has capacity to produce 170,000 units per month. Costs to produce its current monthly sales of 136,000 units follow. The normal selling price of the product is $102 per unit. A new customer offers to purchase 34,000 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: Per Unit $12.50 15.00 Costs at 336,000 $1,700,000 2,040,000 1,612,000 Direct labor 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? 12.00 17.50 13.00 2,380,000 1,768,000 $70.00 $ 9,520,000 Complete this question by entering your answers in the tabs below.