Assume that as of september 1, 7,000 units of halogen light have been produced and sold during the current year. analysis of the domestic market indicates that 3,000 additional units of the halogen light are expected to be sold during the remainder of the year at the normal product price determined under the product cost concept. on september 5, night glow inc. received an offer from tokyo lighting inc. for 1,600 units of the halogen light at $57 each. tokyo lighting inc. will market the units in japan under its own brand name, and no variable selling and administrative expenses associated with the sale will be incurred by night glow inc. the additional business is not expected to affect the domestic sales of the halogen light, and the additional units could be produced using existing productive, selling, and administrative capacity.
a. prepare a differential analysis of the proposed sale to tokyo lighting inc. if an amount is zero, enter zero "0".
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Assume that as of september 1, 7,000 units of halogen light have been produced and sold during the c...
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