11 Problem 10-5A (Static) Special offer pricing LO P7 JART Manufactures and sells underwater markers. Its contribution margin income statement follows. 6 points BOOK Print Contribution Margin Income statement For Your Ended December 31 Der Unit Annual Total Sales (400.000 units) $ 6.00 $ 2,400,000 Variable cost Direct materiala 1.44 576,000 Direct labor 0.36 144.000 Variable overboad 0.60 240.000 Contribution margin 3.60 1,440,000 Fixed costs Fixed overhead 0.20 80,000 Pixed general and administrative 0.15 60,000 Income $ 3.25 5 1.300.000 A potential customer offers to buy 50,000 units for $3.20 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow Direct materials cost per unit and variable overhead cost per unit would not change Direct labor cost per unit would be $0.54 because the offer would require overtime pay. . Accepting the offer would require incremental fixed general and administrative costs of $5,000 Accepting the offer would require no incremental fixed overhead costs. Required: 1. Compute Income from the special offer 2. Should the company accept or reject the special offer? Required 1 Required 2 Compute income from the special offer. (Round your "Per Unit" answers to 2 decimal places.) Special Offer Analysis Per Unit Total Contribution margin Fixed overhead Fixed general and administrative Income (loss)