Pardo Company produces a single product and has capacity to produce 175.000 units per month. Costs...
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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 $128 per unit. A new customer offers to purchase 35,000 units for $68.40 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 Costs at 140,000 Units $ 1,750,000 Per Unit $12.50 15.00 2,100,000 15.00 2,100,000 17.50 2,450,000 16.00 2,240,000 $ 76.00 $ 10,640,000 13 Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.) Sales Variable costs SPECIAL OFFER ANALYSIS Direct labor Direct materials Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Total 0.00 0 $ 0.00 $ 0 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 $128 per unit. A new customer offers to purchase 35,000 units for $68.40 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 Costs at 140,000 Units $ 1,750,000 Per Unit $12.50 15.00 2,100,000 15.00 2,100,000 17.50 2,450,000 16.00 2,240,000 $ 76.00 $ 10,640,000 13 Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.) Sales Variable costs SPECIAL OFFER ANALYSIS Direct labor Direct materials Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Total 0.00 0 $ 0.00 $ 0
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