Assume that $4,500$ units of the halogen light have been produced and sold during the current year. Analysis of the domestic market indicates that $3,600$ additional units of the halogen light are expected to be sold during the remainder of the year at the normal product price determined under the total cost concept. Twilight Lumina Company received an offer from Contech Inc. for $1,400$ units of the halogen light at $$202\mathrm{.}50$ each. Contech Inc. will market the units in Southeast Asia under its own brand name, and no selling and administrative expenses associated with the sale will be incurred by Twilight Lumina Company. The additional business is not expected to affect the domestic sales of the halogen light, and the additional units could be produced using existing capacity.

a$.$ Prepare a differential analysis report of the proposed sale to Contech Inc.

$Revenue from sale of additional units

Variable costs of additional units

Differential income $($loss$)$ from accepting offer