eBook Decision on accepting additional business Instructions Labels and Amount Descriptions Differential Analysis Final Questions - III Instructions Homestead Jeans Co, has an annual plant capacity of 62.900 units, and current production is 44.100 units. Monthly fixed costs are $50,100, and variable costs are 529 per unit. The present selling price is $41 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 16,800 units of the product at $31 each Dawions 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 quantly of sales at Homestead Jeans Co. Required: a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. there is no amount of an amount is zero, unter "o". A colon () will automatically appear in required b. Briefly explain the reason why accepting this adobional business ww increase operating income c. What is the minimum price per unit that would produce a positive contribution marpin? Decision on accepting additional business Instructions Labels and Amount Descriptions Differential Analysis Final Questions Instructions Differential Analysis Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a mission if there is no amount or an amount is zero, enter "o". A colon () will automatically appear if required Differential Analysis Reject (Alternativet) or Accept (Alternative 2) Order November 12 Reject Order Accept Order Differential on income 3 Alternative 1 (Alemative) Alterative 1 Libel I 5 b. Briefly explain the reason why accepting this additional business will increase operating income. Having unused capacity available is to this decision. The differential revenue is result in a net than the differential cost. Thus, accepting this additional business wit What is the minimum price per unit that would produce a ponte contribution marin