Pardo Company produces a single product and has capacity to produce 110,000 units per month. Costs to produce its current monthly sales of 88,000 units follow. The normal selling price of the product is $116 per unit. A new customer offers to purchase 22,000 units for $67.50 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 88,000 Units $ 1,100,000 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? 14.00 1,320,000 1,232,000 17.50 1,540,000 16.00 1,408,000 $ 75.00 $ 6,600,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.) SPECIAL OFFER ANALYSIS Direct labor Direct materials Fixed general and administrative Fixed overhead Fixed general and administrative Income Per Unit Total 0.00 0 $ 0.00 $