Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 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 $20 Unit manufacturing costs: Variable 11 Fixed 1 The differential revenue from the acceptance of the offer is a.$300,000 b.$52,500 c.$250,000 d.$262,500
Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 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 $20 Unit manufacturing costs: Variable 11 Fixed 1 The differential revenue from the acceptance of the offer is a.$300,000 b.$52,500 c.$250,000 d.$262,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 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 | $20 |
| Unit |
|
| Variable | 11 |
| Fixed | 1 |
The differential revenue from the acceptance of the offer is
a.$300,000
b.$52,500
c.$250,000
d.$262,500
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