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Concord Manufacturing Company has a normal production capacity of 43,400 units per month. Because of an excess amount of inventory on hand, it expects to
Concord Manufacturing Company has a normal production capacity of 43,400 units per month. Because of an excess amount of inventory on hand, it expects to produce only 28,400 units in July. Monthly fixed costs and expenses are $130,200($3 per unit at normal plant capacity and variablecost and expenses are $8.00 per unit. The present selling price is $13.00 per unit. Thecompany has an opportunity to sell 8,500 additional unite at $9 per unit to a company who plans to market the product under itsown brand name in a foreign market. The additional business will not affect the regular selling priceorquantity of sales of Concord Manufacturing Company. Prepareadifferential analysis for the proposal to sell at thespecial price
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