Question
Product D is normally sold for $45 per unit. A special price of $30 is offered for the export market. The variable production cost is
Product D is normally sold for $45 per unit. A special price of $30 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 12% of revenue must be paid for all export products. Assume that there is sufficient capacity for the special order.
Make adifferential analysisdated March 16, on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
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