Pardo Company produces a single product and has capacity to produce 110,000 units per month....
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Pardo Company produces a single product and has capacity to produce 110,000 units per month. Costs to produce its current monthly sales of 88,000 units follow. The normal selling price of the product is $108 per unit. A new customer offers to purchase 22,000 units for $63.00 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? Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places Should the company accept the special offer
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