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

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 6BE
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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
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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