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homework 4 Pardo Company produces a single product and has capacity to...

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Accounting

homework 4 Pardo Company produces a single product and has capacity to produce 140,000 units per month. Costs to produce its current monthly
sales of 112,000 units follow. The normal selling price of the product is $130 per unit. A new customer offers to purchase 28,000 units
for $65.70 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixed general and
administrative costs. The special offer would not affect its normal sales.
(a) Compute the income from the special offer.
(b) Should the company accept the special offer?
Complete this question by entering your answers in the tabs below.
Required A
Compute the income for the special offer.
Note: Round your "Per Unit" answers to 2 decimal places.
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