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Homestead Jeans Co. has an annual plant capacity of 67,000 units, and current production is 45,700 units. Monthly fixed costs are $54,400, and variable costs

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Homestead Jeans Co. has an annual plant capacity of 67,000 units, and current production is 45,700 units. Monthly fixed costs are $54,400, and variable costs are $30 per unit. The present selling price is $40 per unit on November 12 of the current year, the company received an offer from Dawkins Company for 19,000 units of the product at $3 each Dawkins Company will market the units in a foreign country under ts own brand name. The additional business is not expected to atlect the domestic selling price or quantity of sales of Homestead Jeans Co Required: Prepare a diferentwowe datod November 12 on whether to reflect (Aitwade 1) or accept (Alternative) Coking order. Pater to ists of Labels and Amount Descriptions for the exact wording of the answer choice for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. there is no amount or an amount is zwa, unter 19"A coon () w automatically appear required b. Briefly explain the reason why accepting this additional business will increase operating income c. What is the minimum price per unit that would produce a positive contribution margin Labels and Amount Descriptions Labels Cash flows from operating activities Costs Amount Descriptions Cash payments for merchandise Cash received from customers Income (los) Revenues Variable manufacturing costs Differential Analysis a. Prepare a diferential analysis cated November 12 on whether to moject (Alternative 1) or accopt (Alternative 3) the Dawkins order. Peter to the date of Label and Amount Descriptione for the exact wording of the answer choions for text entries. For those bones in which you must enter subtracted or negative numbers use a missione da no amount or an amount is zero, enter "o". A colon () will automatically appear if required. Diferential Analysis Reject (Alternative 1) or Accept (Alternative 2) Order November 12 I Reed Order Accept Order Differential Elfed on income (Alternative temative 1) (Alternative 1 Briefly explain the reason why accepting this additional business will crease operating income Having unused capacity available is to this decision. The differential venues result in a net than the offerential cont. Thus, scompting the additional business will e. What is the minimum priceperunt that would produce a positive contribution margir

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