Instructions Homestead Jeans Co. has an annual plant capacity of 64,600 units, and current production is 45,300 units. Monthly fixed costs are $54,500, and variable costs are $29 per unit. The present selling price is $44 per unit on November 12 of the current year, the company received an offer from Dawkins Company for 17,800 units of the product at $31 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 Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. 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 "O". A colon () will automatically appear if required b. Briefly explain the reason why accepting this additional business will increase operating income. c. What is the minimum price per unit that would produce a positive contribution margin? Labels Cash flows from operating activities Costs Amount Descriptions Cash payments for merchandise Cash received from customers K Income (loss) Revenues Variable manufacturing costs a Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those bares in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter *O* A colon () will automatically appear if required Differential Analysis Reject (Alternative 1) or Accept (Alternative 2) Ordet November 12 1 Reject Order Accept Order Differential Effect on Income (Alternative. 2) 2 (Alternative 2) (Alternative 1) $0.00 3 Revenues 4 Costs 0.00 3 Variable manufacturing costs 6 Income (loss) $0.00 D. Briefly explain the reason why accepting this additional business will increase operating income. Having unused capacity available is relevant to this decision. The differential revenue is more this additional business will result in a net_gain than the differential cost. Thus, accepting c. What is the minimum price per unit that would produce a positive contribution margin