Differential Effect on Income Reject Order (Alternative 1) Accept Order (Alternative 2) (Alternative 2) s(1,445,400|X $11,893,6001 x s 448.200 Revenues Costs: Variable manufacturing costs109,500 x 510,000x415.000 x s 350.400 x 383600 X 33,200 383,600|X $| 33.200| 3 Income (Loss) Feedback Check My Work a. Subtract the additional costs from the additional revenues for accepting the order b. Having unused capacity available is irrelevant x to this decision. The differential revenue is more than the differential cost. Thus, accepting this additional business will result in a net loss X c. What is the minimum price per unit that would produce a positive contribution margin? Round your answe to two decimal places. 25 X Feedback Check My Work b. What is the effect on capacity? What is the net gain/loss? c. What are the variable costs per unit? Feedback Check My Work Partially correct Decision on Accepting Additional Business Country Jeans Co. has an annual plant capacity of 66,800 units, and current production is 43,800 units Monthly fixed costs are $40,700, and variable costs are $25 per unit. The present selling price is $33 peru On November 12 of the current year, the company received an offer from Miller Company for 16,600 units the product at $27 each. Miller Company will market the units in a foreign country under its own brand nar The additional business is not expected to affect the domestic selling price or quantity of sales of Country Jeans Co. a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Miller order. If an amount is zero, enter zero "O". For those boxes in which you must ent subtracted or negative numbers use a minus sign Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) November 12 Differential Effect on Income (Alternative 2) Accept Order Reject Order (Alternative 2) (Alternative 1) 1.445,400 X $ 1,893,600X$ 448,200 Revenues Costs: 109,500 x1,510,000X415,000 X Variable manufacturing costs 383,600X $ 33,200 350,400 x Income (Loss) Feedback ,ack My Work a. Subtract the additional costs from the additional revenues for accepting the order b. Having unused capacity available is irrelevant X to this decision. The differential revenue is morethan the differential cost. Thus, accepting this additional busin ess will result in a net loss X