Pardo Company produces a single product and has capacity to produce 145,000 units per month. Costs...

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Pardo Company produces a single product and has capacity to produce 145,000 units per month. Costs to produce its current monthly sales of 116,000 units follow. The normal selling price of the product is $144 per unit. A new customer offers to purchase 29,000 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 Fixed general and administrative Totals (a) Compute the income from the special offer. (b) Should the company accept the special offer? Per Unit Costs at 116,000 Units $ 12.50 $ 1,450,000 15.00 1,740,000 14.00 1,624,000 17.50 2,030,000 15.00 1,740,000 $ 74.00 $ 8,584,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute the income for the special offer. Note: Round your "Per Unit" answers to 2 decimal places. Variable costs SPECIAL OFFER ANALYSIS Contribution margin Fixed costs Per Unit Total 0.00 0 Pardo Company produces a single product and has capacity to produce 145,000 units per month. Costs to produce its current monthly sales of 116,000 units follow. The normal selling price of the product is $144 per unit. A new customer offers to purchase 29,000 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 Fixed general and administrative Totals (a) Compute the income from the special offer. (b) Should the company accept the special offer? Per Unit Costs at 116,000 Units $ 12.50 $ 1,450,000 15.00 1,740,000 14.00 1,624,000 17.50 2,030,000 15.00 1,740,000 $ 74.00 $ 8,584,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute the income for the special offer. Note: Round your "Per Unit" answers to 2 decimal places. Variable costs SPECIAL OFFER ANALYSIS Contribution margin Fixed costs Per Unit Total 0.00 0

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Pardo Company Special Order Analysis a Income from the Special Offer To determine the income from th... View the full answer