Product A is normally sold for $40 per unit. A special price of $34 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 14% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order.a. Prepare a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "0".Differential AnalysisReject Order (Alt. 1) or Accept Order (Alt. 2)March 16 RejectOrder(Alternative 1)AcceptOrder(Alternative 2)DifferentialEffects(Alternative 2)Revenues, per unit$fill in the blank 9f235405f072fb5_1$fill in the blank 9f235405f072fb5_2$fill in the blank 9f235405f072fb5_3Costs: Variable manufacturing costs, per unitfill in the blank 9f235405f072fb5_4fill in the blank 9f235405f072fb5_5fill in the blank 9f235405f072fb5_6Export tariff, per unitfill in the blank 9f235405f072fb5_7fill in the blank 9f235405f072fb5_8fill in the blank 9f235405f072fb5_9Profit (loss), per unit$fill in the blank 9f235405f072fb5_10$fill in the blank 9f235405f072fb5_11$fill in the blank 9f235405f072fb5_12 b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?

Income statement includes revenues, expenses and net income or loss for the company.

Answered: Product A is normally sold for $40 per…

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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Product A is normally sold for $40 per unit. A special price of $34 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 14% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order.

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, enter "0".

Differential AnalysisReject Order (Alt. 1) or Accept Order (Alt. 2)March 16

	Reject Order (Alternative 1)	Accept Order (Alternative 2)	Differential Effects (Alternative 2)
Revenues, per unit	$fill in the blank 9f235405f072fb5_1	$fill in the blank 9f235405f072fb5_2	$fill in the blank 9f235405f072fb5_3
Costs:
Variable manufacturing costs, per unit	fill in the blank 9f235405f072fb5_4	fill in the blank 9f235405f072fb5_5	fill in the blank 9f235405f072fb5_6
Export tariff, per unit	fill in the blank 9f235405f072fb5_7	fill in the blank 9f235405f072fb5_8	fill in the blank 9f235405f072fb5_9
Profit (loss), per unit	$fill in the blank 9f235405f072fb5_10	$fill in the blank 9f235405f072fb5_11	$fill in the blank 9f235405f072fb5_12

b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?

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