Harrison Manufacturing received an offer from an exporter for 18,000 units of its product at $19.00 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available: Particulars Amount ($) Domestic Unit Sales Price $22 Unit Manufacturing Costs: Variable $12 Fixed $2 What is the amount of income or loss from the acceptance of the offer? a. $126,000 income b. $54,000 loss c. $36,000 income d. $36,000 loss
Harrison Manufacturing received an offer from an exporter for 18,000 units of its product at $19.00 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available: Particulars Amount ($) Domestic Unit Sales Price $22 Unit Manufacturing Costs: Variable $12 Fixed $2 What is the amount of income or loss from the acceptance of the offer? a. $126,000 income b. $54,000 loss c. $36,000 income d. $36,000 loss
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...
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What is the amount of income or loss from the acceptance of the offer on these accounting question?

Transcribed Image Text:Harrison Manufacturing received an offer from an exporter for 18,000 units of its
product at $19.00 per unit. The acceptance of the offer will not affect normal
production or domestic sales prices. The following data is available:
Particulars
Amount ($)
Domestic Unit Sales Price
$22
Unit Manufacturing Costs:
Variable
$12
Fixed
$2
What is the amount of income or loss from the acceptance of the offer?
a. $126,000 income
b. $54,000 loss
c. $36,000 income
d. $36,000 loss
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