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5303 PM Mon Jul 20 '5' H 100%CQ.

5:03 PM Apple Mon Jul 20 Bing Google Yahoo a v2.cengagenow.com Favorites The symbol ...f SparkNotes Critical Essa...-Champaign 100% Favorites Ch. 25: Homework c. Add total cost per unit (a) and markup per unit [(a) x (b)]. 5. What other factors influence pricing decisions? 6. Assume that as of August 1, 3,000 units of flat panel displays have been produced and sold during the current year. Analysis of the domestic market indicates that 2,000 additional units are expected to be sold during the remainder of the year at the normal product price determined under the product cost method. On August 3, Crystal Displays Inc. received an offer from Maple Leaf Visual Inc. for 800 units of flat panel displays at $225 each. Maple Leaf Visual Inc. will market the units in Canada under its own brand name, and no variable selling and administrative expenses associated with the sale will be incurred by Crystal Displays Inc. The additional business is not expected to affect the domestic sales of flat panel displays, and the additional units could be produced using existing factory, selling, and administrative capacity. a. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. If an amount is zero, enter "O". Differential Analysis Reject (Alt. 1) or Accept (Alt. 2) Order August 3 Reject Order (Alternative 1) Accept Order Differential Effects (Alternative 2) (Alternative 2) Revenues Costs Variable manufacturing costs Profit (loss) Feedback Check My Work 6. a. Subtract the additional variable manufacturing costs from the additional revenues. Determine the differential effect on income of the revenues, costs, and income (loss). b. Based on the differential analysis in part (a), should the proposal be accepted? Yes Feedback Check My Work 6. b. Which alternative has the most desirable effect on income? Feedback Check My work Partially correct Check My Work 4 more Check My Work uses remaining. Assignment Score: 86.9% All work saved. Save and Exit Previous Submit Assignment for Grading