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.

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 $15$

b$.$ Should the special order be rejected $($Alternative $1)$ or accepted $($Alternative $2)?$