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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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.
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 |
| $fill in the blank | $fill in the blank | $fill in the blank |
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