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
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0ee1a1e-2987-4c2b-9cee-cc2945cf6070%2F4f183934-87b8-42bf-8226-9d163ee1064b%2Fewxcll4_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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