Riverbed Manufacturing Company has a normal production capacity of $41,400$ units per month. Because of an excess amount of

inventory on hand, it expects to produce only $29,000$ units in July. Monthly fixed costs and expenses are $$124,200($ $$3$ per unit at

normal plant capacity$)$ and variable costs and expenses are $$7\mathrm{.}00$ per unit. The present selling price is $$14\mathrm{.}00$ per unit. The company

has an opportunity to sell $9,100$ additional units at $$9$ 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