Decision on Accepting Additional Business Country Jeans Co. has an annual plant capacity of 65,400 units, and current production is 45,400 units. Monthly fixed costs are $41,900, and variable costs are $25 per unit. The present selling price is $38 per unit. On November 12 of the current year, the company received an offer from Miller Company for 14,800 units of the product at $27 each. Miller Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Country Jeans Co. Question Content Area a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Miller order. If an amount is zero, enter zero "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)November 12 Reject Order (Alternative 1) Accept Order (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $fill in the blank 486834ff707f005_1 $fill in the blank 486834ff707f005_2 $fill in the blank 486834ff707f005_3 Costs: Variable manufacturing costs fill in the blank 486834ff707f005_4 fill in the blank 486834ff707f005_5 fill in the blank 486834ff707f005_6 Income (Loss) $fill in the blank 486834ff707f005_7 $fill in the blank 486834ff707f005_8 $fill in the blank 486834ff707f005_9
Decision on Accepting Additional Business Country Jeans Co. has an annual plant capacity of 65,400 units, and current production is 45,400 units. Monthly fixed costs are $41,900, and variable costs are $25 per unit. The present selling price is $38 per unit. On November 12 of the current year, the company received an offer from Miller Company for 14,800 units of the product at $27 each. Miller Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Country Jeans Co. Question Content Area a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Miller order. If an amount is zero, enter zero "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)November 12 Reject Order (Alternative 1) Accept Order (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $fill in the blank 486834ff707f005_1 $fill in the blank 486834ff707f005_2 $fill in the blank 486834ff707f005_3 Costs: Variable manufacturing costs fill in the blank 486834ff707f005_4 fill in the blank 486834ff707f005_5 fill in the blank 486834ff707f005_6 Income (Loss) $fill in the blank 486834ff707f005_7 $fill in the blank 486834ff707f005_8 $fill in the blank 486834ff707f005_9
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Decision on Accepting Additional Business
Country Jeans Co. has an annual plant capacity of 65,400 units, and current production is 45,400 units. Monthly fixed costs are $41,900, and variable costs are $25 per unit. The present selling price is $38 per unit. On November 12 of the current year, the company received an offer from Miller Company for 14,800 units of the product at $27 each. Miller Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Country Jeans Co.
Question Content Area
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Miller order. If an amount is zero, enter zero "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| Reject Order (Alternative 1) |
Accept Order (Alternative 2) |
Differential Effect on Income (Alternative 2) |
|
| Revenues | $fill in the blank 486834ff707f005_1 | $fill in the blank 486834ff707f005_2 | $fill in the blank 486834ff707f005_3 |
| Costs: | |||
| Variable manufacturing costs | fill in the blank 486834ff707f005_4 | fill in the blank 486834ff707f005_5 | fill in the blank 486834ff707f005_6 |
| Income (Loss) | $fill in the blank 486834ff707f005_7 | $fill in the blank 486834ff707f005_8 | $fill in the blank 486834ff707f005_9 |
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