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S FURY produces and sells skateboards. Its contribution margin income statement follows. For Year Ended December 31 Sales (80,000 units) Variable costs Direct materials Direct
S FURY produces and sells skateboards. Its contribution margin income statement follows. For Year Ended December 31 Sales (80,000 units) Variable costs Direct materials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Contribution Margin Income Statement Per Unit $ 50.00 Required: 20.00 8.00 12.00 10.00 3.00 2.00 $5.00 Annual Total $ 4,000,000 A potential customer offers to buy 10,000 units for $42.00 each. These sales would not affect the company's sales through its channels. Details of the special offer follow. 1,600,000 640,000 960,000 800,000 Variable costs per unit would not change. Accepting the offer would require incremental fixed overhead costs of $10,000. Accepting the offer would require incremental fixed general and administrative costs of $15,000. 240,000 160,000 $ 400,000
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