9 15 points Pardo Company produces a single product and has capacity to produce 175,000 units...
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9 15 points Pardo Company produces a single product and has capacity to produce 175,000 units per month. Costs to produce its current monthly sales of 140,000 units follow. The normal selling price of the product is $120 per unit. A new customer offers to purchase 35,000 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. Direct materials Direct labor eBook Hint Print References Per Unit Costs at 140,000 Units $ 12.50 $ 1,750,000 15.00 2,100,000 12.00 17.50 1,680,000 2,450,000 13.00 1,820,000 $ 70.00 $ 9,800,000 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? 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.) Variable costs SPECIAL OFFER ANALYSIS Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Total 0.00 0 $ 0.00 $ < Required A Required B > 9 15 points Pardo Company produces a single product and has capacity to produce 175,000 units per month. Costs to produce its current monthly sales of 140,000 units follow. The normal selling price of the product is $120 per unit. A new customer offers to purchase 35,000 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. Direct materials Direct labor eBook Variable overhead Fixed overhead 101 Hint Fixed general and administrative Totals Print References (a) Compute the income from the special offer. (b) Should the company accept the special offer? Per Unit Costs at 140,000 Units $ 12.50 $ 1,750,000 15.00 2,100,000 12.00 1,680,000 17.50 2,450,000 13.00 1,820,000 $ 70.00 $ 9,800,000 Complete this question by entering your answers in the tabs below. Required A Required B Should the company accept the special offer? Should the company accept the special offer? < Required A Required B > 9 15 points Pardo Company produces a single product and has capacity to produce 175,000 units per month. Costs to produce its current monthly sales of 140,000 units follow. The normal selling price of the product is $120 per unit. A new customer offers to purchase 35,000 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. Direct materials Direct labor eBook Hint Print References Per Unit Costs at 140,000 Units $ 12.50 $ 1,750,000 15.00 2,100,000 12.00 17.50 1,680,000 2,450,000 13.00 1,820,000 $ 70.00 $ 9,800,000 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? 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.) Variable costs SPECIAL OFFER ANALYSIS Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Total 0.00 0 $ 0.00 $ < Required A Required B > 9 15 points Pardo Company produces a single product and has capacity to produce 175,000 units per month. Costs to produce its current monthly sales of 140,000 units follow. The normal selling price of the product is $120 per unit. A new customer offers to purchase 35,000 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. Direct materials Direct labor eBook Variable overhead Fixed overhead 101 Hint Fixed general and administrative Totals Print References (a) Compute the income from the special offer. (b) Should the company accept the special offer? Per Unit Costs at 140,000 Units $ 12.50 $ 1,750,000 15.00 2,100,000 12.00 1,680,000 17.50 2,450,000 13.00 1,820,000 $ 70.00 $ 9,800,000 Complete this question by entering your answers in the tabs below. Required A Required B Should the company accept the special offer? Should the company accept the special offer? < Required A Required B >
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