Question 1

Sea Island Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below:

	Alternative A	Alternative B
Projected revenue	$220,000	$320,000
Unit-level costs	42,000	53,000
Batch-level costs	29,500	41,000
Product-level costs	32,000	34,000
Facility-level costs	27,000	29,500

What is the differential revenue for this decision?

Question 2

The Clear Music Company produces and sells a desktop speaker for $140. The company has the capacity to produce 54,000 speakers each period. At capacity, the costs assigned to each unit are as follows:

Unit level costs	$	65
Product level costs	$	19
Facility level costs	$	9

The company has received a special order for 5,000 speakers. If this order is accepted, the company will have to spend $14,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Thank you!!