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Pardo Company produces a single product and has capacity to produce 185,000 units per month...

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Accounting

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Pardo Company produces a single product and has capacity to produce 185,000 units per month Costs to produce its current monthly sales of 148,000 units follow. The normal selling price of the product is $122 per unit. A new customer offers to purchase 37,000 units for $66.60 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 Costs at 148,000 Direct materials $ 1,85e,eee Direct labor 2,220, 800 2,072,000 2,590,000 Fixed general and administrative $74.00 $ 10,952,000 Units Variable overhead Fixed overhead Per Unit $ 12.50 15.00 14.00 17.50 15.00 2.220,000 Totals (0) 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 Required B Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.) SPECIAL OFFER ANALYSIS Per Unit Total Variable costs 0.00 Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income S 0.00 $

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