a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Fields 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 Analysis Reject 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 320e1701dfd3fca_1 $fill in the blank 320e1701dfd3fca_2 $fill in the blank 320e1701dfd3fca_3 Costs: Variable manufacturing costs fill in the blank 320e1701dfd3fca_4 fill in the blank 320e1701dfd3fca_5 fill in the blank 320e1701dfd3fca_6 Income (Loss) $fill in the blank 320e1701dfd3fca_7 $fill in the blank 320e1701dfd3fca_8 $fill in the blank 320e1701dfd3fca_9 b. Having unused capacity available is to this decision. The differential revenue is than the differential cost. Thus, accepting this additional business will result in a net . c. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places. $fill in the blank 70d348040fd800b_4
Down Home Jeans Co. has an annual plant capacity of 65,300 units, and current production is 45,000 units. Monthly fixed costs are $39,300, and variable costs are $25 per unit. The present selling price is $36 per unit. On November 12 of the current year, the company received an offer from Fields Company for 13,200 units of the product at $28 each. Fields 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 Down Home Jeans Co.
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Fields 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 Analysis | |||
| Reject 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 320e1701dfd3fca_1 | $fill in the blank 320e1701dfd3fca_2 | $fill in the blank 320e1701dfd3fca_3 |
| Costs: | |||
| Variable |
fill in the blank 320e1701dfd3fca_4 | fill in the blank 320e1701dfd3fca_5 | fill in the blank 320e1701dfd3fca_6 |
| Income (Loss) | $fill in the blank 320e1701dfd3fca_7 | $fill in the blank 320e1701dfd3fca_8 | $fill in the blank 320e1701dfd3fca_9 |
b. Having unused capacity available is to this decision. The differential revenue is than the differential cost. Thus, accepting this additional business will result in a net .
c. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places.
$fill in the blank 70d348040fd800b_4
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