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Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs

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Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year. the company received an offer from Dawkins Company for 18,000 , units of the product at 532 each. Dawkins Company wai market the units in a foreign country under its own brand name. The additional business is not expected to affect the domastic selling price or quantity of sales of Homestead Jeans Co. a. Prepare a differential analysis dated November 12 on whether to reject (Aiternative 1) or accept (Aiternative 2) the Dawkins order. If an amount is zero, enter 0. If required, use a minus sign to indicate a loss. b. Having unused capacity avallable is to this decision. The differential revenue is than the differential cost. Thus, accepting this additional business will result in a net c. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. If an amount is zero, enter " 0. If required, use a minus sign to indicate a loss. Differential Analysis b. Having unused capacity avaliable is to this decision. The differential revenue is than the differential cost. Thus, accepting this additional business will result in a net c. What is the minigum price per unit that would produce a positive contribution margin? Round your answer to two decimal places

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