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Circult Masters Incorporated (CM) is presenthy operating at 80% of capacity and manufacturing 45,000 unils of a patented electronic component. The cost structure of the component is as follows: An ltallan firm has offered to purchase 21,700 of the components at a price of $3250 per unit, FOB CMis plant. The normal selling price is $3730 per component. This special order will not affect any of CMis "nomal" business. Management calculated that the cost per component is $29.70, so lt is reluctant to accept this speclal order. Reculred: a. Calculate the fixed overhead per unit? b. Is the cost calculation appropriate? E. Should the offer from the ltalian firm be accepted? Conglete this question by enterieg your answers in the thess below. \begin{tabular}{|r|r|} \hline Req A & Req B and C \\ \hline \end{tabular} b. Is the cost calaulation appropriate? c. Should the ofifer from the Ilellan firm be accepted? \begin{tabular}{|l|l|} \hline b. The cost calculation is eppropriate & \\ \hline C. The offier from the ltalian firm should be & \\ \hline \end{tabular} Circult Masters incorporated (CM) is presently operating at 80% of capacity and manufacturing 115,000 units of a patented electronic component. The cost structure of the component is as follows: An ltallan firm has offered to purchase 21,700 of the components at a price of $32.50 per unit, FOB CMils plant. The normal selling price is $37A0 per component. This special order will not affect any of CMis "normal" business. Management calculated that the cost per component is $29.70, so lt is reluctant to accept this speclal order. Regulred: a. Calculate the fixed overhead per unit? b. Is the cost calculation appropriate? c. Should the offer from the ltalian firm be accepted? Complete this question by Gitering your answers th the tals thelow. Calculate the fixed overheed per unlt? Note: Round your answer to 2 decimal Fixed overhead per unit

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