Product Pricing using the Cost-Plus Approach Methods: Differential Analysis for Accepting Additional Business Night Glow Inc. recently began production of a new product, the halogen light, which required the investment of $1,620,000 in assets. The costs of producing and selling 8.100 halogen lights are estimated as follows: Variable costs per unit: Fixed costs: Direct materials $81 Factory overhead $324,000 Selling and administrative Direct labor 162.000 expenses Factory overhead Selling and administrative 32 expenses $167 Total variable cost per unit Night Glow Inc. is currently considering establishing a selling price for the halogen light. The president of Night Glow Inc. has decided to use the cost-plus approach to product pricing and has indicated that the halogen light must earn a 20% return on invested assets. Required: 6. Assume that as of September 1, 4,500 units of halogen light have been produced and sold during the current year. Analysis of the domestic market indicates that 3.600 additional units of the halogen light are expected to be sold during the remainder of the year at the normal product price determined under the product cost method. On September 5. Night Glow Inc. received an offer from Tokyo Lighting Inc. for 1,400 units of the halogen light at $202.50 each. Tokyo Lighting Inc. will market the units in Japan under its own brand name, and no variable selling and administrative expenses associated with the sale will be incurred by Night Glow to. The additional business is not expected to affect the domestie sales of the halogen light, and the additional units could be produced using existing productive, selling, and administrative capacity a. Prepare a differential analysis of the proposed sale to Video Systems Inc. If an out zero, entero Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) September 5 Reject Order (Alternative 1) Accept Order (Alternative 2) Differential Effect or Income (Alternative Revenues Costs: Variable manufacturing costs Income (Loss)