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 method. On August 3, Crystal Displays Inc. received an offer from Maple Leaf Visual Inc. for 800 units of flat panel displays at $230 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. b. Based on the differential analysis in part (a), should the proposal be accepted? *Round your markup percentage and selling price to two decimal places.

a Prmpare aianalysis othe praposnd s here is no amount o an amont is zero enfer 0A alon LaVisaf Ic Rafer to ists oLahn's and Amoant Descriatians fr the exacd waraing of tne answer chaices far Iext entries Fose baes in whicf yau muast enfer sundracted r nagativn numbers use a minus sign autamaticaly appear if reowred DiTeretial Analyeis Rajart (Alhamativa 1 ar Arcept (Altemative 2) Crier August 3 Differential Effect Reject Order Accept Orden on Income Altemative 1)(ernative 2) (Altemative 2) Revenues Losts: i n(oss) Final Gb. Based on the cifferantial analysis in part (a), should the proposal ba accaptad? The company is indilferentsnce the result is te same regardless ef which aternatve is chase No