Pardo Company produces a single product and has capacity to produce 190,000 units per month. Costs to produce its current monthly sales of 152,000 units follow. The normal selling price of the product is $146 per unit. A new customer offers to purchase 38,000 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.

	Per Unit	Costs at 152,000 Units
Direct materials	$ 12.50	$ 1,900,000
Direct labor	15.00	2,280,000
Variable overhead	11.00	1,672,000
Fixed overhead	17.50	2,660,000
Fixed general and administrative	14.00	2,128,000
Totals	$ 70.00	$ 10,640,000

(a) Compute the income from the special offer. (b) Should the company accept the special offer?

Direct materials Direct labor Variable overhead Fixed overhead Fixed general and administrative Totals Per Unit $ 12.50 15.00 11.00 17.50 14.00 $ 70.00 Costs at 152,000 Units $ 1,900,000 2,280,000 1,672,000 2,660,000 2,128,000 $ 10,640,000 (a) Compute the income from the special offer. (6) Should the company accept the special offer? 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 Per Unit Total Variable costs Contribution margin 0.00 0 Fixed costs Fixed overhead Fixed general and administrative Income $ 0.00 $ 0 Pardo Company produces a single product and has capacity to produce 190,000 units per month. Costs to produce its current monthly sales of 152,000 units follow. The normal selling price of the product is $146 per unit. A new customer offers to purchase 38,000 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 Variable overhead Fixed overhead Fixed general and administrative Totals Per Unit $ 12.50 15.00 11.00 17.50 14.00 $ 70.00 Costs at 152,000 Units $ 1,900,000 2,280,000 1,672,000 2,660,000 2,128,000 $ 10,640,000 (a) 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 Should the company accept the special offer? Should the company accept the special offer?