Product N is normally sold for $42 per unit. A special price of $33 is offered for the export market. The variable production cost is $23 per unit. An additional export 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 Order (Alternative 1) or Accept Order (Alternative 2). If required, round your answers to 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 Analysis Reject 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 $fill in the blank $fill in the blank Costs:       Variable manufacturing costs, per unit fill in the blank fill in the blank  fill in the blank Export tariff, per unit fill in the blank fill in the blank fill in the blank Profit (loss), per unit $fill in the blank $fill in the blank $fill in the blank

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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Accept Business at Special Price

Product N is normally sold for $42 per unit. A special price of $33 is offered for the export market. The variable production cost is $23 per unit. An additional export 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 Order (Alternative 1) or Accept Order (Alternative 2). If required, round your answers to 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 Analysis
Reject 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 $fill in the blank $fill in the blank
Costs:      
Variable manufacturing costs, per unit fill in the blank fill in the blank  fill in the blank
Export tariff, per unit fill in the blank fill in the blank fill in the blank
Profit (loss), per unit $fill in the blank $fill in the blank $fill in the blank
 
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