ezto.mheducation.com + M Question 3 - Chapter 25 Homework - Connect Course Hero Chapter 25 Homework Saved Help Save & Exit Submit Check my work 3 Pardo Company produces a single product and has capacity to produce 150,000 units per month. Costs to produce its current monthly sales of 120,000 units follow. The normal selling price of the product is $122 per unit. A new customer offers to purchase 30,000 units for $63.90 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. eBook Costs at 120, 000 Per Unit Units Hint Direct materials $ $ 12.50 1, 500, 000 Direct labor 15. 00 1, 800, 000 Variable overhead 10.00 1, 200, 000 Fixed overhead 17.50 2, 100, 000 Fixed general and 16. 00 1, 920, 000 administrative Totals $ 71. 00 8, 520, 000 (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 Required A B Compute the income for the special offer. Note: Round your "Per Unit" answers to 2 decimal places. SPECIAL OFFER ANALYSIS Per Unit Total Variable costs Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income