Product T is produced for $5.36 per pound. Product T can be sold without additional processing for $7.66 per pound, or processed further into Product U at an additional cost of $0.56 per pound. Product U can be sold for $8.47 per pound.

	Required:
1.	Prepare a differential analysis dated August 2 on whether to sell Product T (Alternative 1) or process further into Product U (Alternative 2). Refer to the Amount Descriptions list provided 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 0. A colon (:) will automatically appear if required.
2.	Should Product T be sold (Alternative 1) or processed further into Product U (Alternative 2)?

Amount Descriptions
Costs, per unit
Income (Loss), per unit
Revenues, per unit

Prepare a differential analysis dated August 2 on whether to sell Product T (Alternative 1) or process further into Product U (Alternative 2). Refer to the Amount Descriptions list provided 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 0. A colon (:) will automatically appear if required.

Differential Analysis

Sell Product T (Alternative 1) or Process Further into Product U (Alternative 2)

August 2

1		Sell Product T	Process Further into Product U	Differential Effect on Income
2		(Alternative 1)	(Alternative 2)	(Alternative 2)
3
4
5

Should Product T be sold (Alternative 1) or processed further into Product U (Alternative 2)?

Company is indifferent since the result is the same regardless of which alternative is chosen.

Process further into Product U.

Sell Product T.

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.

	Required:
1.	Prepare a differential analysis dated October 23 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. Refer to the list of 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 "0". A colon (:) will automatically appear if required.
2.	Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?

Amount Descriptions
Export tariff, per unit
Income (Loss), per unit
Revenues, per unit
Variable manufacturing costs, per unit

Prepare a differential analysis dated October 23 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. Refer to the list of 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 "0". A colon (:) will automatically appear if required.

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)?

Accept the special order

Reject the special order

The company is indifferent since the result is the same regardless of which alternative is chosen