# topic 5 - Total quantity Fixed overhead Total fixed...

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Total quantity 55,000 Fixed overhead 0.3 Total fixed overhead= 16500 Total cost- Fixed cost= 0.53-0.25= \$0.28 Total cost (excluding the fixed cost)= Total units *cost per unit \$15,400.00 Sales amount @ \$0.33 per pack= \$18,150 The sales amount is greater than costs under differential analysis.The order should be accepted 2 Total pricing under differential analysis= \$15,400.00 Add: price of hologram \$5,000 \$20,400.00 Sales amount= \$18,150 As cost \$20,400 is greater than sales (\$18,150), so in this case the order should not be accepted

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d by special sales. d.
Differential analysis refers to the method pertaining to which two or more alternative of busin other in order to select the best alternative amongst the two. A business takes into considera relevant cost of the underlying alternatives and benefits of the same, however cost already in #2 Differential Analysis Particulars Amount Revenue (Expected decrease) \$ (123,000.00) \$90,000 Fixed Costs (Expected decrease) \$45,000 Total Costs (Expected Decrease) \$135,000 \$ 12,000.00 Therefore, if the product line DVD is dropped, the operating income of BV would rise by \$12,0 Since expenses decline by \$135,000 and the revenue decline by \$123,000.

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