Question: What is the fixed general and administrative? Per Unit $ 15.00 Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (380,000 units)

What is the fixed general and administrative?
What is the fixed general and administrative? Per Unit $ 15.00 Farrow
Company reports the following annual results. Contribution Margin Income Statement Sales (380,000
units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs

Per Unit $ 15.00 Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (380,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income 2.00 4.00 2.50 6.50 Annual Total $ 5,700,000 760,000 1,520,000 950,000 2,470,000 760,000 570,000 $ 1,140,000 2.00 1.50 $ 3.00 The company receives a special offer for 38,000 units at $13 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $152,000 and incremental fixed general and administrative costs of $163,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income or loss for the special offer. (Round your "Per Unit" answers to 2 decimal places.) Per Unit Total 494,000 $ 13.00 $ SPECIAL OFFER ANALYSIS Sales Variable costs Direct materials Direct labor Variable overhead 2.00 4.00 76,000 152,000 95,000 2.50 4.50 171,000 Contribution margin Fixed costs Fixed overhead Fixed general and administrative 4,00 152,000 163,000 Income (los) $ 0.50 $ (144,000) The company receives a special offer for 38,000 units at $13 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $152,000 and incremental fixed general and administrative costs of $163,000. (a) Compute the income or loss for the special offer. (6) Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Should the company accept or reject the special offer? Should the company accept or reject the special offer? Reject

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