Down Home Jeans Co. has an annual plant capacity of 65,600 units, and current production is 45,800 units. Monthly fixed costs are $38,100, and variable costs are $25 per unit. The present selling price is $37 per unit. On February 2, 2014, the company received an offer from Fields Company for 13,300 units of the product at $27 each. Fields 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 Down Home Jeans Co.

c. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places.

eBook Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 65,600 units, and current production is 45,800 units. Monthly fixed costs are $38,100, and variable costs are $25 per unit. The present selling price is $37 per unit. On February 2, 2014, the company received an offer from Fields Company for 13,300 units of the product at $27 each. Fields 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 Down Home Jeans Co Hide Hints) F a. Prepare a differential analysis on whether to reject (Alternative 1) or accept (Alternative 2) the Fields order. If an amount is zero, enter zero"" Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) Fobruary 2, 2014 Reject Order (Alternative 1) Accept Order (Alternative 2) Differential Effect on Income (Alternative 2) Revenues 351000 351000 Costs: Variable manufacturing costs 325000 325000 Income (Loss) 26000 26000