Sell or Process Further St. Paul Lumber Company incurs a cost of $527 per hundred board feet in processing certain "rough-cut" lumber, which it sells for $685 per hundred board feet. An alternative is to produce a "finished cut" at a total processing cost of $604 per hundred board feet, which can be sold for $894 per hundred board feet. a. What is the amount of the differential revenue? $ per hundred board feet b. What is the amount of the differential cost? per hundred board feet c. What is the amount of the differential income for processing rough-cut lumber into finished cut? per hundred board feetDecision on Accepting Additional Business Madison Industries Inc. has an annual plant capacity of 670,000 units, and current production is 450,000 units. Monthly fixed costs are $419,000, and variable costs are $25 per unit. The present selling price is $36 per unit. The company received an offer from Story Mills Company for 13,000 units of the product at $28 each. Story Mills Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Madison Industries Inc. a. Prepare a differential analysis report for the proposed sale to Story Mills Company. Madison Industries Inc. Sell to Story Mills Company Differential Analysis Report Differential revenue from accepting the offer: Revenue from sale of additional units V Differential cost of accepting the offer: Variable costs from sale of additional units Differential income from accepting the offer Feedback Check My Work a. Follow Exhibit 11 in the text. Subtract the additional costs from the additional revenues. b. Madison Inc. should: accept this additional business since the differential revenue is greater than the differential cost per unit. c. What is the minimum price per unit that would produce a contribution margin? Round your answer to the nearest cent.Accepting Business at a Special Price Palomar Battery Company expects to operate at 85% of full capacity during April. The total manufacturing costs for April for the production of 35,700 batteries are budgeted as follows: Direct materials $580,200 Direct labor 213,300 Variable factory overhead 59,730 Fixed factory overhead 96,390 Total manufacturing costs $949,620 The company has an opportunity to submit a bid for 3,000 batteries to be delivered by April 30 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during April or increase the selling or administrative expenses. Round your answers to the nearest cent. a. What is the April budgeted cost per battery for the production of 35,700 batteries? $ per battery b.What is the unit cost below which Palomar Battery Company should not go in bidding on the government contract? per unit