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Saved Farrow Company reports the following annual results. Per Unit $ 15.00 Annual Total $ 3,300,000 Contribution Margin Income Statement Sales (220,000 unita) Variable coats

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Saved Farrow Company reports the following annual results. Per Unit $ 15.00 Annual Total $ 3,300,000 Contribution Margin Income Statement Sales (220,000 unita) Variable coats Direct material Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income 2.00 4.00 2.50 6.50 440,000 880,000 550.000 1,430,000 00 2.00 1.50 $ 3.00 440,000 330,000 5.660,000 The company receives a special offer for 22,000 units at $13 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 $88,000 and incremental fixed general and administrative costs of $95,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject 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 oss Required 8 > Farrow Company reports the following annual results. 5 Per Unit $ 15.00 Annual Total $ 3,300,000 576 points Contribution Margin Income Statement Sales (220,000 unita) Variable costs Direct materials Direct labor Overhead Contribution margin Tixed conta Tixed overhead 2.00 4.00 2.50 5.50 440,000 380.000 550,000 1.430,000 8 01:22:32 Fixed general and administrative 2.00 1.50 $ 3.00 440,000 330,000 $ 660,000 Income Book The company receives a special offer for 22,000 units at $13 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 $88,000 and incremental fixed general and administrative costs of $95,000 (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Required A Required Should the company accept or reject the special offer? Should the company accept or reject the special offer?

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