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Pardo Company produces a single product and has capacity to produce 170,000 units per month....

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Pardo Company produces a single product and has capacity to produce 170,000 units per month. Costs to produce its current monthly sales of 136,000 units follow. The normal selling price of the product is $126 per unit. A new customer offers to purchase 34,000 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. Direct materials Direct labor Variable overhead Fixed overhead Tixed general and administrative Totals Per Unit $ 12.50 15.00 14.00 17.50 15.00 $ 74.00 Conte at 136,000 Units $ 1,700,000 2,040,000 1,904,000 2,380,000 2,040,000 $ 10,064,000 (a) Compute the income from the special offer. (1) 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 Contribution margin Fred costs Fed overhead Fuad general and administrative income Required 8 >

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