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...
icon
Related questions
Question

What is the amount of income or loss from the acceptance of the offer on these accounting question?

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
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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning