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Lunar Systems Inc. received an offer from an international buyer to purchase 18,000 units of its product at $18.00 per unit. The acceptance of the offer will not affect regular domestic production or prices. The following cost data is available: Item Domestic Unit Sales Price Amount (per unit) $21.00 Variable Manufacturing Cost $12.00 Fixed Manufacturing Cost $2.00 What is the amount of income or loss from acceptance of the offer? a) $108,000 income b) $90,000 loss c) $72,000 income d) $54,000 loss

Lunar Systems Inc. received an offer from an international buyer to purchase 18,000 units of its product at $18.00 per unit. The acceptance of the offer will not affect regular domestic production or prices. The following cost data is available: Item Domestic Unit Sales Price Amount (per unit) $21.00 Variable Manufacturing Cost $12.00 Fixed Manufacturing Cost $2.00 What is the amount of income or loss from acceptance of the offer? a) $108,000 income b) $90,000 loss c) $72,000 income d) $54,000 loss

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lunar Systems Inc. received an offer from an international buyer to purchase 18,000 units of its product at $18.00 per unit. The acceptance of the offer will not affect regular domestic production or prices. The following cost data is available: Item Domestic Unit Sales Price Amount (per unit) $21.00 Variable Manufacturing Cost $12.00 Fixed Manufacturing Cost $2.00 What is the amount of income or loss from acceptance of the offer? a) $108,000 income b) $90,000 loss c) $72,000 income d) $54,000 loss
Transcribed Image Text:Lunar Systems Inc. received an offer from an international buyer to purchase 18,000 units of its product at $18.00 per unit. The acceptance of the offer will not affect regular domestic production or prices. The following cost data is available: Item Domestic Unit Sales Price Amount (per unit) $21.00 Variable Manufacturing Cost $12.00 Fixed Manufacturing Cost $2.00 What is the amount of income or loss from acceptance of the offer? a) $108,000 income b) $90,000 loss c) $72,000 income d) $54,000 loss
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