Product A is normally sold for $40 per unit. A special price of $32 is offered for the export market. The variable production cost is $25 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. Required:
Prepare a differential analysis dated July 7, 2015, on whether to reject (Alternative 1) or accept (Alternative 2) the special order.

what are your options to your question?

d. the economy will face inflation.

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