Question: Product A is normally sold for 9 60 per unit

Product A is normally sold for $ 9.60 per unit. A special price of $ 7.20 is offered for the export market. The variable production cost is $ 5.00 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. Prepare a differential analysis dated March 16, 2014, on whether to reject (Alternative 1) or accept (Alternative 2) the special order.

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  • CreatedJune 27, 2014
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