The company manufactures boats. Their newest product sells for $1100. The company produces and sells 3,500 units per year. Cost data follows: Variable manufacturing $650 per unit
Variable selling and administrative $160 per unit
Fixed manufacturing $420,000 per year
Fixed selling and administrative $320,000 per year
A potential deal has come up for a one-time sale of 20 units at a special price of $800 per unit.
The sale will not negatively impact the company's regular sales activities.
It will require the normal variable manufacturing costs and variable selling and administrative costs.
There is plenty of excess capacity and the deal will not impact fixed costs.

Create a Differential Analysis of a Special Pricing Decision showing the expected increase or decrease in operating income if this order is accepted.
Based on your analysis, would you accept or reject the order? Why?

cash flow statement possibly

answer; only identify and interpret trends in the marketplace;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.