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a.
Reject Order Accept Order on Income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenues
Costs:
Direct materials
Direct labor
Variable factory overhead
Variable selling and admin. expenses
Shipping costs
Certification costs
Income (loss)
Goodman accept the special order from Euro Motors.
b.
Alternative calculation:
Differential Income from
Accepting Special Order
=
Selling Price Offered
by Euro Motors
–
Number of Units
–
Minimum Price per Unit
=
Total Differential Costs
=
=
Number of Units
Score:
Key Code:
Instructions
Name:
Section:
0%
Reject or Accept Order
January 21, 2014
Differential Effect
[Key code here]
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Differential Analysis
An asterisk (*) will appear to the right of an incorrect entry, or above and below in formulas.
Enter a zero in cells you would otherwise leave blank.
a.
Reject Order Accept Order on Income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenues –$ 1,840,000$ 1,840,000$
Costs:
b.
$1,695,000
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Score:
Instructions
Answers are entered in the cells with gray backgrounds.
ON
January 21, 2014
Differential Analysis
Reject or Accept Order
Differential Effect
Total Differential Costs
Name:
Solution
Section: