n JART manufactures and sells underwater markers. Its contribution margin income statement follows Contribution Margin Income Statement

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JART manufactures and sells underwater markers. Its contribution margin income statement follows Contribution Margin Income Statement Per Unit $ 6.00 For Year Ended December 31 Sales (410, 0e0 units) Variable costs Direct naterials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income . . A potential customer offers to buy 51,000 units for $3.00 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow. 1.45 0.35 0.60 3.60 Direct materials cost per unit and variable overhead cost per unit would not change. • Direct labor cost per unit would be $0.53 because the offer would require overtime pay. . Accepting the offer would require incremental fixed general and administrative costs of $5.100. 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 9.39 8.25 $ 3.05 Special Offer Analysis Compute income from the special offer. Note: Round your "Per Unit" answers to 2 decimal places. Contribution margh Annual Total $ 2,450,000 Complete this question by entering your answers in the tabs below. Fixed overhead Fixed general and administrative incon poss 594,500 143, 500 246,000 1,476, 688 123, 000 102, 500 $ 1,250, 500 Per Unit Total JART manufactures and sells underwater markers. Its contribution margin income statement follows Contribution Margin Income Statement Per Unit $ 6.00 For Year Ended December 31 Sales (410, 0e0 units) Variable costs Direct naterials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income . . A potential customer offers to buy 51,000 units for $3.00 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow. 1.45 0.35 0.60 3.60 Direct materials cost per unit and variable overhead cost per unit would not change. • Direct labor cost per unit would be $0.53 because the offer would require overtime pay. . Accepting the offer would require incremental fixed general and administrative costs of $5.100. 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 9.39 8.25 $ 3.05 Special Offer Analysis Compute income from the special offer. Note: Round your "Per Unit" answers to 2 decimal places. Contribution margh Annual Total $ 2,450,000 Complete this question by entering your answers in the tabs below. Fixed overhead Fixed general and administrative incon poss 594,500 143, 500 246,000 1,476, 688 123, 000 102, 500 $ 1,250, 500 Per Unit Total

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1 Compute income from the special offer Sales Units being sold 51000 Price per unit 300 Sales calcul... View the full answer