Question 54 **Differential Revenue Analysis of Jacoby Company's Export Offer**Jacoby Company received an offer from an exporter to purchase 26,400 units of its product at a price of $18 per unit. This transaction will not impact the normal production or domestic sales prices. The following data have been provided for context:- **Domestic unit sales price:** $23**Unit Manufacturing Costs:**- **Variable Costs:** $10- **Fixed Costs:** $3**Question:** What is the differential revenue from the acceptance of the offer?**Answer Choices:**- a. $132,000- b. $1,082,400- c. $607,200- d. $475,200**Detailed Explanation:**1. **Calculation of Revenue from Export Offer:** - Offer price per unit: $18 - Number of units in the offer: 26,400 - Total revenue from the offer: $18 * 26,400 = $475,2002. **Calculation of Relevant Costs:** - Since fixed costs will remain unchanged, only the variable costs will impact the decision. - Variable cost per unit: $10 - Total variable cost for 26,400 units: $10 * 26,400 = $264,0003. **Differential Revenue Calculation:** - Differential revenue (additional revenue from the offer) = Total revenue from the offer - Total variable costs - Differential revenue = $475,200 - $264,000 = $211,200Therefore, after evaluating the given options, there appears to be no matching correct answer. The computed differential revenue is $211,200, which is not listed among the options provided.

Differential Analysis: Differential analysis refers to the analysis of differential revenue that…

Answered: Jacoby Company received an offer from…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering the implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $58 Direct Labour $74 Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000 Fixed Selling Costs…
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WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: A) B) Product X yes yes no no Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales value if processed further The cost of the joint raw material input is $90,000. Which of the products should be processed beyond the split-off point? Product Y yes no yes yes Product X 2,700 $ 25.00 $ 2.00 $31.00 Product Z no yes no yes Product Y 3,200 $ 28.00 $ 4.00 $31.00 Product Z 4,200 $ 27.00 $4.00 $36.00
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Jacoby Company received an offer from an exporter for 26,400 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: $23 Domestic unit sales price Unit manufacturing costs: