Accept Business at Special Price

Product A is normally sold for $$42$ per unit. A special price of $$31$ is offered for the export market. The variable production cost is $$26$ 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 March $16$ on whether to reject $($Alternative $1)$ or accept $($Alternative $2)$ the special order. If required, round your answers to two decimal places. If an amount is zero, enter $"0".$

Differential Analysis

Reject Order $($Alt$.1)$ or Accept Order $($Alt$.2)$

March $16$

Reject

Order

$($Alternative $1)$ Accept

Order

$($Alternative $2)$ Differential

Effects

$($Alternative $2)$

Revenues, per unit $fill in the blank $6$bdfd$606$dff$505$e$\_1$

$fill in the blank $6$bdfd$606$dff$505$e$\_2$

$fill in the blank $6$bdfd$606$dff$505$e$\_3$

Costs:

Variable manufacturing costs, per unit fill in the blank $6$bdfd$606$dff$505$e$\_4$

fill in the blank $6$bdfd$606$dff$505$e$\_5$

fill in the blank $6$bdfd$606$dff$505$e$\_6$

Export tariff, per unit fill in the blank $6$bdfd$606$dff$505$e$\_7$

fill in the blank $6$bdfd$606$dff$505$e$\_8$

fill in the blank $6$bdfd$606$dff$505$e$\_9$

Profit $($loss$),$ per unit $fill in the blank $6$bdfd$606$dff$505$e$\_10$

$fill in the blank $6$bdfd$606$dff$505$e$\_11$

$fill in the blank $6$bdfd$606$dff$505$e$\_12$

Question Content Area

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