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Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 65,800 units, and current production is 44,000 units. Monthly fixed

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Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 65,800 units, and current production is 44,000 units. Monthly fixed costs are $39,300, and variable costs are $25 per unit. The present selling price is $34 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 16,900 units of the product at $26 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. a. Prepare a differential analysis dated November 12 on whether to Reject Order (Alternative 1) or Accept Order (Alternative 2). 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 (Alt. 1) or Accept Order (Alt. 2) November 12 Reject Order Accept Order Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable manufacturing costs 0 Profit (loss) b. Having unused capacity available is relevant business will result in a net gain to this decision. The differential revenue is more than the differential cost. Thus, accepting this additional What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places.

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