Annual financial information for a company follows. Contribution Margin Income Statement Sales (8,340 units) Variable costs...

Transcribed Image Text:

Annual financial information for a company follows. Contribution Margin Income Statement Sales (8,340 units) Variable costs Direct materials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Annual Total $ 11.90 $ 99,246 1.00 8,340 1.60 13,344 2.10 17,514 7.20 60,048 1.90 15,846 1.30 10,842 $ 4.00 $ 33,360 A new customer offers to buy 2,170 units at $4.70 per unit. This special offer would incur the same variable costs per unit as for the company's normal units, and the special offer would not affect normal sales. This special offer would incur incremental fixed general and administrative costs of $1,519 and incremental fixed overhead of $3,038. Complete this question by entering your answers in the tabs below. Required A Required B For the special offer, calculate the income or loss. Note: Round your "Per Unit" answers to 2 decimal places. Sales SPECIAL OFFER ANALYSIS Variable costs Direct materials Direct labor Variable overhead Contribution margin Fixed overhead Fixed general and administrative Income (loss) Per Unit Total 0.00 0 $ 0.00 S Required B > Annual financial information for a company follows. Contribution Margin Income Statement Sales (8,340 units) Variable costs Direct materials. Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Annual Total $ 11.90 $ 99,246 1.00 8,340 1.60 13,344 2.10 17,514 7.20 60,048 1.90 15,846 1.30 $ 4.00 10,842 $ 33,360 A new customer offers to buy 2,170 units at $4.70 per unit. This special offer would incur the same variable costs per unit as for the company's normal units, and the special offer would not affect normal sales. This special offer would incur incremental fixed general and administrative costs of $1,519 and incremental fixed overhead of $3,038. Complete this question by entering your answers in the tabs below. Required A Required B Should the special offer be accepted or rejected? Should the special offer be accepted or rejected? Reject < Required A Required B > Annual financial information for a company follows. Contribution Margin Income Statement Sales (8,340 units) Variable costs Direct materials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Annual Total $ 11.90 $ 99,246 1.00 8,340 1.60 13,344 2.10 17,514 7.20 60,048 1.90 15,846 1.30 10,842 $ 4.00 $ 33,360 A new customer offers to buy 2,170 units at $4.70 per unit. This special offer would incur the same variable costs per unit as for the company's normal units, and the special offer would not affect normal sales. This special offer would incur incremental fixed general and administrative costs of $1,519 and incremental fixed overhead of $3,038. Complete this question by entering your answers in the tabs below. Required A Required B For the special offer, calculate the income or loss. Note: Round your "Per Unit" answers to 2 decimal places. Sales SPECIAL OFFER ANALYSIS Variable costs Direct materials Direct labor Variable overhead Contribution margin Fixed overhead Fixed general and administrative Income (loss) Per Unit Total 0.00 0 $ 0.00 S Required B > Annual financial information for a company follows. Contribution Margin Income Statement Sales (8,340 units) Variable costs Direct materials. Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Annual Total $ 11.90 $ 99,246 1.00 8,340 1.60 13,344 2.10 17,514 7.20 60,048 1.90 15,846 1.30 $ 4.00 10,842 $ 33,360 A new customer offers to buy 2,170 units at $4.70 per unit. This special offer would incur the same variable costs per unit as for the company's normal units, and the special offer would not affect normal sales. This special offer would incur incremental fixed general and administrative costs of $1,519 and incremental fixed overhead of $3,038. Complete this question by entering your answers in the tabs below. Required A Required B Should the special offer be accepted or rejected? Should the special offer be accepted or rejected? Reject < Required A Required B >