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Decision on Accepting Addibonal Business Westem Jeans Co. has an annual plant capacty of 2,000,000 units, and current production is 1,920,000 anits, Monthly foxed costs
Decision on Accepting Addibonal Business Westem Jeans Co. has an annual plant capacty of 2,000,000 units, and current production is 1,920,000 anits, Monthly foxed costs ane 5400,000 , and variable costs are 59 per uni, The present welling price is $15 per unit. On July 6 of the current year, the company received an offer from Childs Company for 50,000 units of the product at 513 each. Childs Company all market the units in a foregn country under ins own brand name. The additonal business is not expected to affect the domestic seling price or quantity of sales of Westem Jeans Co. a. Prepare a differemal analysis doted July 6 on whether to reject (Alternative 1) or accept (Alternative 2) the Chikis arder. If an amount is rero, enter " 0 :. If required, use a minas sign to indicate a loss
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