Product A is normally sold for $8.90 per unit. A special price of $6.60 is offered for

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Product A is normally sold for $8.90 per unit. A special price of $6.60 is offered for the export market. The variable production cost is $5.10 per unit. An additional export tariff of 25% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. Prepare a differential analysis dated January 22, 2012, on whether to reject (Alternative 1) or accept (Alternative 2) the special order.

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Financial and Managerial Accounting Using Excel for Success

ISBN: 978-1111993979

1st edition

Authors: James Reeve, Carl S. Warren, Jonathan Duchac

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