Question: any solutions to this question? Decision on Accepting Additional Business Madison Industries Inc. has an annual plant capacity of 644,000 units, and current production is
Decision on Accepting Additional Business Madison Industries Inc. has an annual plant capacity of 644,000 units, and current production is 452,000 units. Monthly fixed costs are 5381,000 , and variable costs are $25 per unit. The present selling price is 137 per unit. The company received an offer from Story Mills Cempany for 16,000 units of the product at $29 edch. Story Mills Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domentic seling price or quantity of sales of Madison lndustries lec. a. Prepare a differential analyais report for the proposed sale to Story Mints Company. Mudisen Industries Inc. Sell to Story Mills Company Differential Analysis Report Feestack a. Follow Exhibit 11 in the text. Subtract the additional costs from the additional rovenues. b. Madison Inc. should: c. What is the minimum price per unit that would produce a contribution margin? Round your ansmer to the nearest cent
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