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 Unit manufacturing costs: Variable Fixed $22 $ 11 $4 What is the differential revenue from the acceptance of the offer? a. $66,900 b. $490,600 c. $914,300 d. $423,700

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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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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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
Unit manufacturing costs:
Variable
Fixed
$22
$ 11
$4
What is the differential revenue from the acceptance of the offer?
a. $66,900
b. $490,600
c. $914,300
d. $423,700
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 Unit manufacturing costs: Variable Fixed $22 $ 11 $4 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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