Product R is normally sold for $53.90 per unit. A special price of $40.10 is offered for the export market. The variable production cost is $32.68 per unit. An additional export tariff of 20% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order.

Differential Analysis

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

October 23

1		Reject Order	Accept Order	Differential Effect on Income
2		(Alternative 1)	(Alternative 2)	(Alternative 2)
3
4	Costs:
5
6
7

Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?