Sienna Company produces surfboards. A customer has offered Sienna $428 a unit for...
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Accounting
Sienna Company produces surfboards. A customer has offered Sienna $428 a unit for 128 units. To fill the special order, Sienna would incur unit-level costs of $378 per unit and batch-level costs of $6,900. Sienna also incurred $71,400 of product-level costs to design the board and $11,400 of facility-level costs. Based on your quantitative analysis, should Sienna Company accept the special order?
Multiple Choice
Yes, differential revenue is $12,000 greater than differential costs.
No, differential revenue is $6,400 less than differential costs.
No, differential revenue is $500 less than differential costs.
Yes, differential revenue is $640 greater than differential costs.
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