Sales (150, 000 units) $ 15.00 $ 2, 250, 000 Variable costs Direct materials 2.00 300, 900 Direct labor 4.00 600, 090 Overhead 2.50 375, 000 Contribution margin 6.50 975, 090 Fixed costs Fixed overhead 2.00 300,090 Fixed general and administrative 1 .50 225, 090 Income $ 3.00 $ 450,000 The company receives a special offer for 15,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $60,000 and incremental fixed general and administrative costs of $4,500. (a) Compute the income or loss for the special offer. b) Should the company accept the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income or loss for the special offer. (Round your "Per Unit" answers to 2 decimal places.) SPECIAL OFFER ANALYSIS Per Unit Total Contribution margin Income (loss) Prey 14 of 15A company must decide between scrapping or reworking units that do not pass inspection. The company has 22,000 defective units that have already cost $132,000 to manufacture. The units can he sold as scrap for $78,000 or reworked for $99,000 and then sold for $187,000. {a} Prepare a scrap or rework analysis of income effects. {In} Should the company sell the units as scrap or rework them? Revenue Income (loss) Incremental income [or loss) I I [b] The company should: Beto Company pays $2.50 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $1.20 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Beto make or buy the part? (a) Make or Buy Analysis Make Buy Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should