Assume that as of August 1, 3,000 units of flat panel displays have been produced and sold during the current year. Analysis of the domestic market indicates that 2,000 additional units are expected to be sold during the remainder of the year at the normal product price determined under the product cost concept. On August 3, Crystal Displays Inc. received an offer from Maple Leaf Visual Inc. for 900 units of flat panel displays at $227 each. Maple Leaf Visual Inc. will market the units in Canada under its own brand name, and no variable selling and administrative expenses associated with the sale will be incurred by Crystal Displays Inc. The additional business is not expected to affect the domestic sales of flat panel displays, and the additional units could be produced using existing factory, selling, and administrative capacity.

A.

Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter 0. A colon (:) will automatically appear if required. 2. Assuming that the product cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays.

Feedback tells me to divide the desired profit plus the selling and administrative expenses by the total manufacturing costs. But, I'm not sure how to do that. If you can figure this out for me, I would really appreciated it!

Score: 40/53 Differential Analysis Reject Order (Alternative 1) or Accept Order (Alternative 2) August 3 Differential Reject order Accept order Effect on Income (Alternative 1) Alternative 2) Alternative 2) 204,300.00 $204,300.00 $0.00 3 Revenues 4 Costs: 0.00 5 Variable manufacturing costs $0.00 6 Income (Loss) per unit