Product R is normally sold for $52 per unit. A special price of $42 is offered f

Question

Product R is normally sold for $52 per unit. A special price of $42 is offered for the export market. The variable production cost is $30 per unit. An additional export tariff of 30% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. Required: 1. Prepare a differential analysis dated October 23 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required. 2. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?

Explanation / Answer

Special Price 42 Variable Cost 30 Export Tariff 30% 12.6 Incremental Revenue on special order -0.6 Incremental revenue in negetive so not accept the order or reject the special order

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.