=+6. Assume that as of September 1, 2010, 7,000 units of halogen light have been produced and sold during the current year. Analysis of the domestic market indicates that 3,000 additional units of the halogen light are expected to be sold during the remainder of the year at the normal product price determined under the total cost concept.

On September 5, Night Watch Company received an offer from Forever Glow Inc.

for 2,000 units of the halogen light at $45 each. Forever Glow Inc. will market the units in Japan under its own brand name, and no selling and administrative expenses associated with the sale will be incurred by Night Watch Company. The additional business is not expected to affect the domestic sales of the halogen light, and the additional units could be produced using existing capacity.

a. Prepare a differential analysis report of the proposed sale to Forever Glow Inc.