Decision on Accepting Additional Business Madison Industries Inc. has an annual plant capacity of 634,000 units, and current production is 434,000 units. Monthly fixed costs are $419,000, and variable costs are $25 per unit. The present selling price is $37 per unit. The company received an offer from Story Mills Company for 13,000 units of the product at $26 each, Story Mills 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 Madison Industries Inc. a. Prepare a differential analysis report for the proposed sale to Story Mills Company Madison Industries Inc. Sell to Story Mills Company Differential Analysis Report Differential revenue from accepting the offer Revenue from sale of additional units Variable costs from sale of additional units b. Madison Inc. should c. What is the minimum price per unit that would produce a contribution margin? Round your answer to the nearest cent. a. Prepare a differential analysis report for the proposed sale to Story Mills Company. Madison Industries Inc. Sell to Story Mills Company Differential Analysis Report Differential revenue from accepting the offer: Differential cost of accepting the offer: Revenue from sale of additional units Variable costs from sale of additional units Mason Inc. Snovias C. What is the minimum price per unit that would produce a contribution margin? Round your answer to I J 1 U TULIYTI UUUU y Unuer its own brand name. The additional business sales of Madison Industries Inc. a. Prepare a differential analysis report for the proposed sale to Story Mills Company, Madison Industries Inc. Sell to Story Mills Company Differential Analysis Report Differential revenue from accepting the offer: Differential cost of accepting the offer: Differential income from accepting the offer Differential loss from accepting the offer C. What is the minimum price per unit that would produce a contribution margin? Round your answer eBook Decision on Accepting Additional Business Madison Industries Inc. has an annual plant capacity of 634,000 units, and current production is 434,000 units. Monthly fixed costs are $419,000, and variable costs are $25 per unit. The present selling price is $37 per unit. The company received an offer from Story Mills Company for 13,000 units of the product at $26each, Story Mills Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestie selling price or quantity of sales of Madison Industries Inc. a. Prepare a differential analysis report for the proposed sale to Story Mills Company Madison Industries Inc. Sell to Story Mills Company Differential Analysis Report Differential revenue from accepting the offer: not accept this additional business because there is no unused capacity. not accept this additional business since it will result in a differential loss. accept this additional business since the differential revenue is greater than the differential cost per unit. accept this additional business since it will involve no additional variable costs. c. What is the minimum price per unit that would produce a contribution margin? Round your answer to the nearest cent. Madison Industries Inc. has an annual plant capacity of 634,000 units, and current production is 434,000 units. Monthly fixed costs are $419,000, and variable costs are $25 per unit. The present selling price is $37 per unit. The company received an offer from Story Mills Company for 13,000 units of the product at $26 each. Story Mills 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 Madison Industries Inc. a. Prepare a differential analysis report for the proposed sale to Story Mills Company Madison Industries Inc. Sell to Story Mills Company Differential Analysis Report Differential revenue from accepting the offer: Differential cost of accepting the offer: b. Madison Inc. should c. What is the minimum price per unit that would produce a contribution margin? Round your answer to the nearest cent
