Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,400,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows:

1	Variable costs per unit:
2	Direct materials	$120.00
3	Direct labor	30.00
4	Factory overhead	49.00
5	Selling and administrative expenses	34.00
6	Total	$233.00
7	Fixed costs:
8	Factory overhead	$251,000.00
9	Selling and administrative expenses	145,000.00

Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 11% rate of return on invested assets.

6. 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.

	Reject Order	Accept Order	Differential Effect on Income
2		(Alternative 1)	(Alternative 2)	(Alternative 2)
3	revenues	0	222000.00	222,000.00
4	costs
5	variable manufacturing cost	0	????	????
6	income loss per unit	0.00		????