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Down Home Jeans Co. has an annual plant capacity of 63,100 units, and current production is 46,000 units. Monthly fixed costs are $40,300, and variable costs are $25 per unit. The present selling price is $32 per unit. On February 2, 2014, the company received an offer from Fields Company for 15,800 units of the product at $29 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 on whether to reject (Alternative 1) or accept (Alternative 2) the Fields order. If an amount is zero, enter zero "0".
What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places.
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Julia Katchum is in charge of the Eastern Regional Counterterrorism Computer Forensics Unit. Her recent investigations led her to believe that an imminent threat of a terrorist act in the Chicago area exists.
Edison Company manufactures wool blankets and accounts for production costs using process costing. The following information is available regarding its May inventories. Compute the cost of (a) products transferred from production to finished goods ..
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