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Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of...

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Accounting

Decision on Accepting Additional Business
Homestead Jeans Co. has an annual plant capacity of 66,900 units, and current production is 45,200 units. Monthly fixed costs are $40,400, and variable costs are $25 per unit. The present selling price is $35 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 13,700 units of the product at $28 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.
a. Prepare a differential analysis dated November 12 on whether to Reject Order (Alternative 1) or Accept Order (Alternative 2). If an amount is zero, enter zero "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis
Reject Order (Alt.1) or Accept Order (Alt.2)
November 12
\table[[,\table[[Reject],[Order],[(Alternative 1)]],\table[[Accept],[Order],[(Alternative 2)]],\table[[Differential],[Effects],[(Alternative 2)]]],[Revenues,$,$,
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