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Accept Business at Special Price A product is normally sold for $45 per unit. A special price of $32 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. a. Prepare a differential analysis dated December 15 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 Analysis Reject (Alt. 1) or Accept (Alt. 2) Order December 15 Line Item Description Revenues, per unit Costs: > Variable manufacturing costs, per unit Export tariff, per unit Reject Order Profit (loss), per unit Accept Order (Alternative (Alternative 1) 2) 386 b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)? Differential Effects (Alternative 2)

Accept Business at Special Price A product is normally sold for $45 per unit. A special price of $32 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. a. Prepare a differential analysis dated December 15 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 Analysis Reject (Alt. 1) or Accept (Alt. 2) Order December 15 Line Item Description Revenues, per unit Costs: > Variable manufacturing costs, per unit Export tariff, per unit Reject Order Profit (loss), per unit Accept Order (Alternative (Alternative 1) 2) 386 b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)? Differential Effects (Alternative 2)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accept Business at Special Price A product is normally sold for $45 per unit. A special price of $32 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. a. Prepare a differential analysis dated December 15 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 Analysis Reject (Alt. 1) or Accept (Alt. 2) Order December 15 > Line Item Description Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Profit (loss), per unit Reject Accept Order Order (Alternative (Alternative 1) 2) 000 Differential Effects (Alternative 2) 000 b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?
Transcribed Image Text:Accept Business at Special Price A product is normally sold for $45 per unit. A special price of $32 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. a. Prepare a differential analysis dated December 15 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 Analysis Reject (Alt. 1) or Accept (Alt. 2) Order December 15 > Line Item Description Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Profit (loss), per unit Reject Accept Order Order (Alternative (Alternative 1) 2) 000 Differential Effects (Alternative 2) 000 b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?
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