=+PR 25-4B Differential analysis report for further processing obj. 1

✔ 1. Differential revenue, $13,050 HD Labs Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 12,000 units of flat panel displays are estimated as follows:

Variable costs per unit: Fixed costs:

Direct materials $140 Factory overhead $960,000 Direct labor 30 Selling and administrative expenses 480,000 Factory overhead 50 Selling and administrative expenses 25 _____ Total $245 _____ _____