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Country Jeans Co. has an annual plant capacity of 63,000 units, and current production is 46,800 units. Monthly fixed costs are $41,400, and vartable costs
Country Jeans Co. has an annual plant capacity of 63,000 units, and current production is 46,800 units. Monthly fixed costs are $41,400, and vartable costs are $25 per unit. The present selling price is $36 per unit. On November 12 of the current year, the company recelved an offer from Miller Company for 14,800 units of the product at $26 each. Miller Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Country Jeans Co. a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Miller order. If an amount is zero, enter zero " 0 ". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Reject Order (AIt. 1) or Accept Order (AIt. 2) November 12 Revenues Costs: Variable manufacturing costs Income (Loss) Feedoeck " Check My Work a. Subtract the additional costs from the additional revenues for accepting the order
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