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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 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 $7.00 per unit. The present selling price is $14.00 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
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