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Question

m/irm/takeAssignment/takeAssignmentMain.do?invoker assignments& ator=assignment-take&inpr; ?? i- ? ? eBook ? Show Me How Calculator Accept Business at Special Price is normally sold for $45 per unit. A special price of $32 is offered for the export market. The variable production cost is $24 per unit. An additional export tariff of 13% of revenue must be paid for all export products. Assume there is sufficient a. Prepare a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, entero. 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) March 16 Reject Order (Alternate l? Accept Order (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Income (Loss), per unit b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)? 5:10 PM D I

Explanation / Answer

Differential Analysis Reject Order (Alternative 1) Accept Order (alternative 2) Differential Effect on Income Revenues per unit 45 32 13 Costs: Variable manufacturing costs per unit 24 24 0 Export Tariff per unit (32*13%) 0 4.16 4.16 Income (Loss) per unit 21 3.84 17.16 (b) Special Order should be accepted

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