Homestead Jeans Co. has an annual plant capacity of 60,300 units, and current production is 47,100 units. Monthly fixed costs are $54,600, and variable costs are $32 per unit. The present selling price is $45 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 11,000 units of the product at $36 each. Dawkins 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 Homestead Jeans Co.

Required:
A.	Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
B.	What is the minimum price per unit that would produce a positive contribution margin? If required, round your answer to two decimal places.

Score: 17/53

Differential Analysis

Reject Order (Alternative 1) or Accept Order (Alternative 2)

November 12

1		Reject Order	Accept Order	Differential Effect on Income
2		(Alternative 1)	(Alternative 2)	(Alternative 2)
3
4
5
6

What is the minimum price per unit that would produce a positive contribution margin? If required, round your answer to two decimal places.