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Problem 25-5A (Static) Special offer pricing LO P7 JART manufactures and sells underwater markers. Its contribution margin income statement follows. A potential customer offers to

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Problem 25-5A (Static) Special offer pricing LO P7 JART manufactures and sells underwater markers. Its contribution margin income statement follows. A potential customer offers to buy 50,000 units for $3.20 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow. - Direct materials cost per unit and variable overhead cost per unit would not change. - Direct labor cost per unit would be $0.54 because the offer would require overtime pay. - Accepting the offer would require incremental fixed general and administrative costs of $5,000. - Accepting the offer would requife no incremental fixed overhead costs. Required: 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? Compute income from the special offer. Note: Round your "Per Unit" answers to 2 decimal places. Should the company accept or reject the special offer? Should the company accept or reject the special offer

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