JART manufactures and sells underwater markers. Its contribution margin income statement follows. Contribution Margin Income Statement For Year Ended December 31 Sales (420,000 units) Por Unit $7.00 Annual Total $ 2,940,000 variable costs Direct materials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead 1.46 613,280 8.44 184,888 9.79 294,000 4.40 1,848,000 8.30 126,000 Fixed general and administrative Incon 8.25 185,000 $3.85 $1,17,0 A potential customer offers to buy 52,000 units for $3.70 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow. Direct materials cost per unit and variable overhead cost per unit would not change. Direct labor cost per unit would be $0.62 because the offer would require overtime pay. .Accepting the offer would require incremental fixed general and administrative costs of $5,200. 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute income from the special offer Note: Round your "Per Unit answers to 2 decimal places. Sales Variable costs Special Offer Analytic Direct materials Direct labor Variable overhead Contribution margin Find costs Fixed overhead Fixed general and administrative Income (loss) Per Unit Total Os 3.70 $ 152,400 00000 146 75,920 0.62 32,240 0.70 36,400 0.92 47,840 ° 0.10 5,200 0.82 42,640 Recurs Required 2 >
JART manufactures and sells underwater markers. Its contribution margin income statement follows. Contribution Margin Income Statement For Year Ended December 31 Sales (420,000 units) Por Unit $7.00 Annual Total $ 2,940,000 variable costs Direct materials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead 1.46 613,280 8.44 184,888 9.79 294,000 4.40 1,848,000 8.30 126,000 Fixed general and administrative Incon 8.25 185,000 $3.85 $1,17,0 A potential customer offers to buy 52,000 units for $3.70 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow. Direct materials cost per unit and variable overhead cost per unit would not change. Direct labor cost per unit would be $0.62 because the offer would require overtime pay. .Accepting the offer would require incremental fixed general and administrative costs of $5,200. 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute income from the special offer Note: Round your "Per Unit answers to 2 decimal places. Sales Variable costs Special Offer Analytic Direct materials Direct labor Variable overhead Contribution margin Find costs Fixed overhead Fixed general and administrative Income (loss) Per Unit Total Os 3.70 $ 152,400 00000 146 75,920 0.62 32,240 0.70 36,400 0.92 47,840 ° 0.10 5,200 0.82 42,640 Recurs Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Transcribed Image Text:JART manufactures and sells underwater markers. Its contribution margin income statement follows.
Contribution Margin Income Statement
For Year Ended December 31
Sales (420,000 units)
Por Unit
$7.00
Annual Total
$ 2,940,000
variable costs
Direct materials
Direct labor
Variable overhead
Contribution margin
Fixed costs
Fixed overhead
1.46
613,280
8.44
184,888
9.79
294,000
4.40
1,848,000
8.30
126,000
Fixed general and administrative
Incon
8.25
185,000
$3.85
$1,17,0
A potential customer offers to buy 52,000 units for $3.70 each. These sales would not affect the company's sales through its normal
channels. Details about the special offer follow.
Direct materials cost per unit and variable overhead cost per unit would not change.
Direct labor cost per unit would be $0.62 because the offer would require overtime pay.
.Accepting the offer would require incremental fixed general and administrative costs of $5,200.
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?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute income from the special offer
Note: Round your "Per Unit answers to 2 decimal places.
Sales
Variable costs
Special Offer Analytic
Direct materials
Direct labor
Variable overhead
Contribution margin
Find costs
Fixed overhead
Fixed general and administrative
Income (loss)
Per Unit
Total
Os
3.70 $
152,400
00000
146
75,920
0.62
32,240
0.70
36,400
0.92
47,840
°
0.10
5,200
0.82
42,640
Recurs
Required 2 >
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