Oliver produces e-bikes. A customer has offered Oliver $1,000 per unit for 200 units. To fill the order, Oliver would incur unit-level costs of $600 per unit and batch-level costs of $5,000. Oliver also incurred $60,000 of product-level costs to design the board and $20,000 of facility-level costs. What is the amount of differential revenue? Multiple Choice О о $200,000 $15,000 $75,000 $100,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Oliver produces e-bikes. A customer has offered Oliver $1,000 per unit for 200 units. To fill the order, Oliver would incur unit-level costs of $600 per unit and batch-level costs of $5,000. Oliver also incurred $60,000 of product-level
costs to design the board and $20,000 of facility-level costs. What is the amount of differential revenue?
Multiple Choice
О
о
$200,000
$15,000
$75,000
$100,000
Transcribed Image Text:Oliver produces e-bikes. A customer has offered Oliver $1,000 per unit for 200 units. To fill the order, Oliver would incur unit-level costs of $600 per unit and batch-level costs of $5,000. Oliver also incurred $60,000 of product-level costs to design the board and $20,000 of facility-level costs. What is the amount of differential revenue? Multiple Choice О о $200,000 $15,000 $75,000 $100,000
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