A product is normally sold for $42 per unit. A special price of $35 is offered...

 

Transcribed Image Text:

A product is normally sold for $42 per unit. A special price of $35 is offered for the export market. The variable production cost is $26 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. a. Prepare a differential analysis dated December 15 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "0". Differential Analysis Reject (Alt. 1) or Accept (Alt. 2) Order Line Item Description December 15 Reject Order Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Profit (loss), per unit Accept Order Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) S 35 5 26 5.25 3.75 V A product is normally sold for $42 per unit. A special price of $35 is offered for the export market. The variable production cost is $26 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. a. Prepare a differential analysis dated December 15 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "0". Differential Analysis Reject (Alt. 1) or Accept (Alt. 2) Order Line Item Description December 15 Reject Order Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Profit (loss), per unit Accept Order Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) S 35 5 26 5.25 3.75 V