Jacoby Company received an offer from an exporter for 22,300 units of a product at $19 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $22 Unit manufacturing costs: Variable $11 $4 Fixed What is the differential revenue from the acceptance of the offer? a. $66,900 b. $490,600 c. $914,300 d. $423,700
Jacoby Company received an offer from an exporter for 22,300 units of a product at $19 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $22 Unit manufacturing costs: Variable $11 $4 Fixed What is the differential revenue from the acceptance of the offer? a. $66,900 b. $490,600 c. $914,300 d. $423,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Jacoby Company received an offer from an exporter for 22,300 units of a product at $19
per unit. The acceptance of the offer will not affect normal production or domestic sales
prices. The following data are available:
Domestic unit sales price $22
Unit manufacturing costs:
Variable
$11
$4
Fixed
What is the differential revenue from the acceptance of the offer?
a. $66,900
b. $490,600
c. $914,300
d. $423,700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F56a9e091-50c6-4b81-be46-eaef0880db6e%2F0d99d40b-b3b8-42a8-b863-2e6eb7a1ce6e%2Fqlpx6pm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jacoby Company received an offer from an exporter for 22,300 units of a product at $19
per unit. The acceptance of the offer will not affect normal production or domestic sales
prices. The following data are available:
Domestic unit sales price $22
Unit manufacturing costs:
Variable
$11
$4
Fixed
What is the differential revenue from the acceptance of the offer?
a. $66,900
b. $490,600
c. $914,300
d. $423,700
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