Q12. JART

2. Should the company accept or reject the special offer?

JART manufactures and sells underwater markers. Its contribution margin income statement follows. A potentlal customer offers to buy 52,000 units for $3.70 each. These sales would not affect the company's sales through its normal channels. Detalls about the special offer follow. - Direct materials cost per unit and varlable overhead cost per unit would not change. - Direct labor cost per unit would be $0.62 because the offer would require overtime pay. - Accepting the offer would require incremental fixed general and administrative costs of $5,200. - Accepting the offer would require 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. JART manufactures and sells underwater markers. Its contribution margin income statement follows. A potentlal customer offers to buy 52,000 units for $3.70 each. These sales would not affect the company's sales through its normal channels. Detalls about the special offer follow. - Direct materials cost per unit and varlable overhead cost per unit would not change. - Direct labor cost per unit would be $0.62 because the offer would require overtime pay. - Accepting the offer would require incremental fixed general and administrative costs of $5,200. - Accepting the offer would require 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