Integrated Masters Inc. (IMI) is presently operating at 80% of capacity and manufacturing 116,000 units of a patented electronic component. The cost structure of the component is as follows:

Raw materials $6.10 per unit
Direct labor 6.10 per unit
Variable overhead 8.10 per unit
Fixed overhead $363,000 per year

An Italian firm has offered to purchase 20,100 of the components at a price of $24.5 per unit, FOB IMI's plant. The normal selling price is $32.3 per component. This special order will not affect any of IMI's "normal" business. Management calculated that the cost per component is $23.3, so it is reluctant to accept this special order.

Required:

a. Calculate the fixed overhead per unit?
b. Is the cost calculation appropriate?
c. Should the offer from the Italian firm be accepted?

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.