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Problem 23-5A (Algo) Special offer pricing LO P7 JAft manufactures and selis underwater matkers, its contribution margin income statement follows. A potential cintomer offers to
Problem 23-5A (Algo) Special offer pricing LO P7 JAft manufactures and selis underwater matkers, its contribution margin income statement follows. A potential cintomer offers to buy 58.000 units for 53.70 each. These sales would not aflect the compary's saies through iss normal channeis. Detais about the special offer follow. - Drect materials cost per unit and variable overhead cost per unit would not change. - Direct iabor cost per unit would be $0.56 because the offer would require overtime pay - Accepting the offer would require incremental fored general and adminstrabe costs of $5.800 - Accepting the offer would require no incremental foxtd overhead costs Required: 1. Compute income from the special otfer 2. Should tise company accept or reject the special offer? Required: 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Compute income from the special offer, (Round your "Per Unit" answers to 2 decimal places.) Required: 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Should the company accept or reject the special offer? Should the company accept or reject the special offer
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