Madison Industries Inc. has an annual plant capacity of 638,000 units, and current production is 448,000 units. Monthly fixed costs are $418,000, and variable costs are $25 per unit. The present selling price is $34 per unit. The company received an offer from Story Mills Company for 15,000 units of the product at $29 each. Story Mills Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domesti selling price or quantity of sales of Madison Industries Inc. a. Prepare a differential analysis report for the proposed sale to Story Mills Company. Madison Industries Inc. Sell to Story Mills Company Differential Analysis Report Differential revenue from accepting the offer: Revenue from sale of additional units Differential cost accepting the offer: Variable costs from sale of additional units Differential income from accepting the offer ✓ ✓ b. Madison Inc. should: accept this additional business since the differential revenue is greater than the differential cost per unit. c. What is the minimum price per unit that would produce a contribution margin? Round your answer to the nearest cent. ✓

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