xercise $16-13($Static$)$ Accept special sales order? LO $16-2,16-3$

Circuit Masters Incorporated $($CMI$)$ is presently operating at $80\%$ of capacity and manufacturing $120,000$ units of a patented electronic component. The cost structure of the component is as follows:

Raw materials$ $6\mathrm{.}00$per unitDirect labor$6\mathrm{.}00$per unitVariable overhead$8\mathrm{.}00$per unitFixed overhead$ $480,000$per year

An Italian firm has offered to purchase $20,000$ of the components at a price of $$24$ per unit, FOB CMI$$s plant. The normal selling price is $$32$ per component. This special order will not affect any of CMI$$s $$normal$$ business. Management calculated that the cost per component is $$24,$ so it is reluctant to accept this special order.

Required:

Calculate the fixed overhead per unit.

Is the cost calculation appropriate?

Should the offer from the Italian firm be accepted?