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Down Home Jeans Co. has an annual plant capacity of 64.000 units, and current production is 45, 200 units Monthly feed costs are $41, 600,
Down Home Jeans Co. has an annual plant capacity of 64.000 units, and current production is 45, 200 units Monthly feed costs are $41, 600, and variable costs are $25 per unit. The present selling price $32 per unit. On February 2 the company received an offer from Fields company for 16, 200 units of the product at $28 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. Prepare a differential analysis dated February 2 whether to reject (Alternative 1) or accept (Alternative 2) the Fields order. If an amount is zero, enter zero "0". Moving unused capacity available is __________ to this decision. The differential revenue is __________than the differential cost. Thus, accepting this additional business will result in ____________ What is the minimum price per unit that would produce a positive contribution margin? $ _____________
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