Accept business at special price Product D is normally sold for $82.30 per unit.
ID: 2471850 • Letter: A
Question
Accept business at special price
Product D is normally sold for $82.30 per unit. A special price of $68.60 is offered for the export market. The variable production cost is $54.22 per unit. An additional export tariff of 30% of revenue must be paid for all export products. Determine the differential income or loss per unit from selling Product D for export. Round answers to nearest whole cent. Enter all amounts as positive numbers.
Differential revenue from export $ Differential cost from export $ Differential SelectincomelossItem 3 from accepting export sale $Explanation / Answer
Differential revenue from export Revenue per unit $68.60 Differential cost from export VAr manuf cost $54.22 Export tariff($68.60*10%) $6.86 Differential income from accepting export sales $61.08 $7.52