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under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans
under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co. a. Prepare a differential analysis dated November 12 on whether to Reject Order (Alternative 1) or Accept Order (Alternative 2). If an amount is zero, enter zero "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) November 12 Reject Order Accept Order Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues 0 $ 576,000 576,000 V Costs: Variable manufacturing costs 522,000 X -522,000 Profit (loss) 0 54,000 54,000 Feedback Check My Work a. Subtract the additional costs from the additional revenues for accepting the order. b. Having unused capacity available is relevant gain to this decision. The differential revenue is more than the differential cost. Thus, accepting this additional business will result in a net c. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places. 522,000 X Feedback
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