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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 >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 >
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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