Dineshbhai Pardo Company produces a single product and has capacity to produce 125,000 units per month. Costs to produce its current monthlysales of 100,000 units follow. The normal selling price of the product is $136 per unit. A new customer offers to purchase 25,000 unitsfor $63.00 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixed general andadministrative costs. The special offer would not affect its normal sales.Direct materialsDirect laborVariable overheadFixed overheadFixed general and administrativeTotalsCosts at 100,000Units$ 1,250,000Per Unit$ 12.5015.001,500,00010.001,000,00017.5015.001,750,0001,500,000$ 70.00$ 7,000,000(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 A Required BCompute the income for the special offer.Note: Round your "Per Unit" answers to 2 decimal places.SPECIAL OFFER ANALYSISVariable costsContribution marginFixed costsFixed overheadFixed general and administrativeIncomePer UnitTotalRequired ARequired B >

Requirement AStep 1: Compute the sales of the special offer Selling price per unit of special offer…

Answered: Pardo Company produces a single product…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
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Pardo Company produces a single product and has capacity to produce 125,000 units per month. Costs to produce its current monthly sales of 100,000 units follow. The normal selling price of the product is $136 per unit. A new customer offers to purchase 25,000 units for $63.00 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 Costs at 100,000 Units $ 1,250,000 Direct labor Variable overhead Fixed overhead Fixed general and administrative Totals Per Unit $ 12.50 15.00 1,500,000 10.00 17.50 15.00 1,000,000 1,750,000 1,500,000 $ 70.00 $ 7,000,000 (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 A Required B Compute the income for the special offer. Note: Round your "Per Unit" answers to 2 decimal places.…

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