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Pardo Company produces a single product and has capacity to produce 165,000 units per month. Costs to produce its current monthly sales of'132,000 units follow.
Pardo Company produces a single product and has capacity to produce 165,000 units per month. Costs to produce its current monthly sales of'132,000 units follow. The normal selling price of the product is $108 per unit. A new.r customer offers to purchase 33,000 units for $64.80 per unit. If the special offer is accepted, there will be no additional xed overhead and no additional xed general and administrative costs. The special offer would not affect its normal sales. Costs at 132,888 Per Unit Units Direct materials $ 12.58 $ 1,658,888 Direct labor 15.88 1,988,888 Variable overhead 11.88 1,452,888 Fixed overhead 17.58 2,318,888 Fixed general and administrative 15.88 2,112,808 Totals $ 7'2.88 $ 9,584,B% in} Compute the income from the special offer. [b]: Should the company accept the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Compute the inoome for the special offer. {Round your "Per Unit" answers to 2 decimal places.) Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income $ 0.00 $ 0 RequiredB >
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