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 $140 per unit. A new customer offers to purchase 33,000 units for $64.80 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 UnitCosts at 132,000 UnitsDirect materials$ 12.50$ 1,650,000Direct labor15.001,980,000Variable overhead13.001,716,000Fixed overhead17.502,310,000Fixed general and administrative14.001,848,000Totals$ 72.00$ 9,504,000

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

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 $140 per unit. A new customer offers to purchase 33,000 units for $64.80 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. (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 Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.)