EX$\mathrm{.}25-01.$ALGO

Decision on Accepting Additional Business

EX$\mathrm{.}25-03.$ALGO

EX$\mathrm{.}25-06$

EX$\mathrm{.}25-07.$ALGO

EX$\mathrm{.}25-08.$ALGO

EX$\mathrm{.}25-09.$ALGO

EX$\mathrm{.}25-12.$ALGO

EX$\mathrm{.}25-13.$ALGO

Down Home Jeans Co$.$ has an annual plant capacity of $65,900$ units, and current production is $43,600$ units. Monthly fixed costs are $$40,700,$ and variable costs are $$25$ per unit. The present selling price is $$32$ per unit. On November $12$ of the current year, the company received an offer from Fields Company for $15,000$ units of the product at $$28$ each. Fields Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Down Home Jeans Co$.$

a$.$ Prepare a differential analysis dated November $12$ on whether to reject $($Alternative $1)$ or accept $($Alternative $2)$ the Fields order. If an amount is zero, enter zero $"0".$ For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis

Reject Order $($Alt$.1)$ or Accept Order $($Alt$.2)$

November $12$

$\backslash$table$[[,\backslash$table$[[$Reject$],[$Order$],[($Alternative $1)]],\backslash$table$[[$Accept$],[$Order$],[($Alternative $2)]],\backslash$table$[[$Differential$],[$Effect$],[$on Income$],[($Alternative $2)]]],[$Revenues$,$:$,$$$,],[$Costs:$,,,],[$Variable manufacturing costs,,,$=$