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MZE Manufacturing Company has a normal plant capacity of 37,500 units per month. Because of an extra-large quantity of inventory on hand. It expects to
MZE Manufacturing Company has a normal plant capacity of 37,500 units per month. Because of an extra-large quantity of inventory on hand. It expects to produce only 30,000 units in May. Monthly fixed costs and expenses are $112,500 (53 per unit at normal plant capacity and variable costs and expenses are $8 25 par unt. The present selling price is $13.50 por unit. The company has an opportunity to sell 7,500 additional units at $0.90 per unit to an exporter who plans to market the product under its own brand name in a foreign market. The additional business is therefore not expected to attect the regular seling price or quantity of sales of MZE Manufacturing Company Required: Prepare a diferential analysis report, dated Apr 21 of the current year, on the proposal to sell at the special price. Roer to the Amount Descriptions for the exact wording of the answer choices for text entries. Below the report indicate whether MZE Manufacturing Company should accept or decline the special order. Differential Analysis Report Amount Descriptions Prepare a differential analysis report, dated April 21 of the current year, on the proposal to sell at the special price. Refer to the Amount Descript wording of the answer choices for text entries. Below the report Indicate whether MZE Manufacturing Company should accept or decline the sp Amount Descriptions Monthly fixed costs and expenses Variable manufacturing costs Differential Analysis Reject Order (Alternative 1) or Accept Order (Alternative 2) April 21 Reject Order (Alternative 1) Accept Order (Alternative 2) Differential Effect on Income (Alternative 2) 2 Revenue 3 Costs 4 5 Income (loss) MZE Manufacturing Company should accept the order for the additional units decline the order for the additional units
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