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 554,000, and variable costs are $29 per unit. The present selling price is S4 per unit. On November 12, 2014, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins 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 Homestead Jeans Co. Prepare a differential analysis on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. If an amount is zero, enter zero "0". Follow Example Exercise 9-6. Subtract the additional costs from the additional revenues for accepting the order. Having unused capacity available is to this decision. The differential revenue is than the differential cost. Thus, accepting this additional business will result in a net What is the minimum price per unit that would produce a positive contribution margin? $ What is the effect on capacity? What is the net gain/loss? What are the variable costs per unit