Accept Business at Special PriceProduct D is normally sold for $43 per unit. A special price of $32 is offered for the export market. The variable production cost is $23 per unit. An additionalexport tariff of 16% of revenue must be paid for all export products. Assume that there is sufficient capacity for the special order.Prepare a differential analysis dated March 16, on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answersto two decimal places. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.Differential AnalysisReject Order (Alt. 1) or Accept Order (Alt. 2)March 16Differential Effecton Income(Alternative 2)Reject Order(Alternative 1) (Alternative 2)Accept OrderRevenues, per unitCosts:Variable manufacturing costs, per unitExport tariff, per unitReject the special orderAccept the special orderbe rejected (Alternative 1) or accepted (Alternative 2)?

Answered: Accept Business at Special Price…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 6BE

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