Accept Business at Special Price

A product is normally sold for $42 per unit. A special price of $35 is offered for the export market. The variable production cost is $21 per unit. An additional export tariff of 10% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order.

Question Content Area

a. Prepare a differential analysis dated December 15 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. Round your answers to two decimal places. If an amount is zero, enter "0".

Differential Analysis Reject (Alt. 1) or Accept (Alt. 2) Order December 15

Line Item Description	Reject Order (Alternative 1)	Accept Order (Alternative 2)	Differential Effects (Alternative 2)
Revenues, per unit
Costs:	xxxxxxxxxxxxxx	xxxxxxxxxxxxx	xxxxxxxxxxxx
Variable manufacturing costs, per unit
Export tariff, per unit
Profit (loss), per unit