Question
Accept Business at Special Price Product N is normally sold for $21.40 per unit. A special price of $16.10 is offered for the export market.
Accept Business at Special Price
Product N is normally sold for $21.40 per unit. A special price of $16.10 is offered for the export market. The variable production cost is $11.20 per unit. An additional export tariff of 20% 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 Order (Alternative 1) or Accept Order (Alternative 2). 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 (Alternative 2) | |
Revenues, per unit | $fill in the blank 674ff7f5ffd507c_1 | $fill in the blank 674ff7f5ffd507c_2 | $fill in the blank 674ff7f5ffd507c_3 |
Costs: | |||
Variable manufacturing costs, per unit | fill in the blank 674ff7f5ffd507c_4 | fill in the blank 674ff7f5ffd507c_5 | fill in the blank 674ff7f5ffd507c_6 |
Export tariff, per unit | fill in the blank 674ff7f5ffd507c_7 | fill in the blank 674ff7f5ffd507c_8 | fill in the blank 674ff7f5ffd507c_9 |
Profit (loss), per unit | $fill in the blank 674ff7f5ffd507c_10 | $fill in the blank 674ff7f5ffd507c_11 | $fill in the blank 674ff7f5ffd507c_12 |
Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?
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