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Riverbed Manufacturing Company has a normal production capacity of 4 1 , 4 0 0 units per month. Because of an excess amount of inventory
Riverbed Manufacturing Company has a normal production capacity of units per month. Because of an excess amount of
inventory on hand, it expects to produce only units in July. Monthly fixed costs and expenses are $ $ per unit at
normal plant capacity and variable costs and expenses are $ per unit. The present selling price is $ per unit. The company
has an opportunity to sell additional units at $ per unit to a company who plans to market the product under its own brand
name in a foreign market. The additional business will not affect the regular selling price or quantity of sales of Riverbed
Manufacturing Company.
Prepare a differential analysis for the proposal to sell at the special price.
Variable costs and expenses
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