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Decision on Accepting Additional Business Western Jeans Co. has an annual plant capacity of 2,000,000 units, and current production is 1,920,000 units. Monthly fixed costs

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Decision on Accepting Additional Business Western Jeans Co. has an annual plant capacity of 2,000,000 units, and current production is 1,920,000 units. Monthly fixed costs are $400,000, and varioble costs are $9 per unit. The present selling price is $15 per unit. On July 6 of the current year, the company recelved an offer from Childs Company for 50,000 units of the product at $13 each. Childs 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 Western Jeans Co. a. Prepare a differential analysis dated July 6 on whether to reject (Alternative 1) or accept (Alternative 2) the Childs order. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss, b. Having unused copocity availoble 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 decimal places

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