Please do not give solution in image format thanku Accept Business at Special PriceA product is normally sold for $42 per unit. A special price of $30 is offered for the export market. The variable production cost is $23 per unit. An additional export tariff of 13% of revenue must be paid for allexport 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 iszero, enter "0".Line Item DescriptionRevenues, per unitCosts:Differential AnalysisReject (Alt. 1) or Accept (Alt. 2) OrderDecember 15Variable manufacturing costs, per unitExport tariff, per unitProfit (loss), per unitDifferentialEffects(Alternative 1) (Alternative 2) (Alternative 2)RejectOrderAcceptOrderDUb. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?

Differential analysis :- This analysis shows the comparison between two different alternatives. A…

Answered: Accept Business at Special Price A…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 6BE

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Accept Business at Special Price Product N is normally sold for $21.40 per unit. A special price of $16.10 is offered for the export market. The variable production cost is $11.20 per unit. An additional export tariff of 20% 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). 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 Аcсept Differential Order Order Effect (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Profit (loss), per unit Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?
Product A is normally sold for $40 per unit. A special price of $34 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 14% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. a. Prepare a differential analysis dated March 16 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 AnalysisReject Order (Alt. 1) or Accept Order (Alt. 2)March 16 RejectOrder(Alternative 1) AcceptOrder(Alternative 2) DifferentialEffects(Alternative 2) Revenues, per unit $fill in the blank 9f235405f072fb5_1 $fill in the blank 9f235405f072fb5_2 $fill in the blank 9f235405f072fb5_3 Costs: Variable manufacturing costs, per unit fill in the blank 9f235405f072fb5_4 fill in the blank 9f235405f072fb5_5 fill in the blank 9f235405f072fb5_6 Export…
Product R 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 that there is sufficient capacity for the special order. Prepare a differential analysis dated March 16, 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". 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 Effecton Income(Alternative 2) Revenues, per unit $fill in the blank 722a4ffa8fe5ff6_1 $fill in the blank 722a4ffa8fe5ff6_2 $fill in the blank 722a4ffa8fe5ff6_3 Costs: Variable manufacturing costs, per unit fill in the…
Product N is normally sold for $41 per unit. A special price of $32 is offered for the export market. The variable production cost is $24 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 Аcсept Differential Order Order Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Profit (loss), per unit Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?
Product MM is normally sold for $410 per unit. A special price of $380 is offered for the export market. The variable production cost is $270 per unit. An additional export tariff of 30% 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 5 on whether to Reject Order (Alternative 1) or Accept Order (Alternative 2).
Product R is normally sold for $52 per unit. A special price of $42 is offered for theexport market. The variable production cost is $30 per unit. An additional export tariffof 30% of revenue must be paid for all export products. Assume there is sufficientcapacity for the special order. Prepare and show in solution a differential analysis datedOctober 23 on whether to reject (Alternative 1) or accept (Alternative 2) the specialorder.
Jacoby Company received an offer from an exporter for 29,100 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $23 Unit manufacturing costs: Variable $10 Fixed $3 What is the differential revenue from the acceptance of the offer? a.$145,500 b.$523,800 c.$1,193,100 d.$669,300
Jacoby Company received an offer from an exporter for 26,200 units of product at $19 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $24 Unit manufacturing costs: Variable Fixed 10 d. $131,000 3 The differential revenue from the acceptance of the offer is O a. $628,800 O b. $497,800 Oc. $1,126,600 O
Company A calculates the cost per unit of its product at $ 28 (with $ 18 variable cost & $ 10 fixed cost). The product sells for $ 42. If then there is a large trader who intends to buy 5000 units but at a price of $ 25 with an additional shipping cost of $ 1, then should Company A accept the order (Assume that the order does not interfere with regular orders)? what is the increase/decrease in net profit of company A? O $125.000 O $140,000 O $95.000 O $30,000
Jacoby Company received an offer from an exporter for 26,300 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: $24 Domestic unit sales price Unit manufacturing costs: Variable Fixed $13 $5 What is the differential revenue from the acceptance of the offer? Oa. $420,800 b. $210,400 Oc. $1,052,000 Od. $631,200
Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 29,000 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $22 Unit manufacturing costs: Variable 11 Fixed 3 What is the differential cost from the acceptance of the offer? a.$87,000 b.$522,000 c.$319,000 d.$638,000
At ABC Company, it costs $30 per unit ($20 variable and $10 fixed) to make a product at full capacity that normally sells for $45 per Units. A foreign wholesaler offers to buy 3,000 units at $25 each. ABC will incur special shipping costs of $2 per unit. Assuming that the company has excess operating capacity, Indicate the net income (loss) for the company would realize by accepting the special order. Reject Ассept Net Income Increase/ Decrease Revenues Costs Net Income ords E English (United States)

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