Accept Business at Special Price

Product D is normally sold for $44 per unit. A special price of $35 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 16% of revenue must be paid for all export products. Assume that there is sufficient capacity for the special order.

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". For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis
Reject Order (Alt. 1) or Accept Order (Alt. 2)
March 16
	Reject Order (Alternative 1)	Accept Order (Alternative 2)	Differential Effect on Income (Alternative 2)
Revenues, per unit	$fill in the blank 5b9097f6703afb0_1	$fill in the blank 5b9097f6703afb0_2	$fill in the blank 5b9097f6703afb0_3
Costs:
Variable manufacturing costs, per unit	fill in the blank 5b9097f6703afb0_4	fill in the blank 5b9097f6703afb0_5	fill in the blank 5b9097f6703afb0_6
Export tariff, per unit	fill in the blank 5b9097f6703afb0_7	fill in the blank 5b9097f6703afb0_8	fill in the blank 5b9097f6703afb0_9
Income (Loss), per unit	$fill in the blank 5b9097f6703afb0_10	$fill in the blank 5b9097f6703afb0_11	$fill in the blank 5b9097f6703afb0_12

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

Process or Sell

Product A is produced for $3.56 per pound. Product A can be sold without additional processing for $4.2 per pound or processed further into Product B at an additional cost of $0.4 per pound. Product B can be sold for $4.4 per pound.

Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis
Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2)
November 15
	Sell Product A (Alternative 1)	Process Further into Product B (Alternative 2)	Differential Effect on Income (Alternative 2)
Revenues, per unit	$fill in the blank 1f8fed049073065_1	$fill in the blank 1f8fed049073065_2	$fill in the blank 1f8fed049073065_3
Costs, per unit	fill in the blank 1f8fed049073065_4	fill in the blank 1f8fed049073065_5	fill in the blank 1f8fed049073065_6
Income (Loss), per unit	$fill in the blank 1f8fed049073065_7	$fill in the blank 1f8fed049073065_8	$fill in the blank 1f8fed049073065_9

Feedback

Partially correct

Should Product A be sold (Alternative 1) or processed further into Product B (Alternative 2)? Sell Product A