## Stryker Industries Differential Revenue Analysis**Scenario:**Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per unit. Acceptance of the offer will not affect normal production or domestic sales prices.### Given Data:- **Domestic unit sales price:** $20- **Unit manufacturing costs:** - **Variable:** $11 - **Fixed:** $1### Calculation Objective:Determine the differential revenue from the acceptance of the export offer.### Answer Options:- a. $300,000- b. $262,500- c. $250,000- d. $52,500This analysis helps in understanding the impact on revenue when making strategic production and pricing decisions for export markets without affecting domestic operations.

DIFFERENTIAL REVENUE Differential revenue is the anticipated increase or decrease in revenue.…

Answered: Stryker Industries received an offer…

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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Accept Business at Special Price Product A is normally sold for $42 per unit. A special price of $33 is offered for the export market. The variable production cost is $24 per unit. An additional export tariff of 16% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. a. Prepare a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "0". Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) March 16 Reject Accept Differential Order Order Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Profit (loss), per unit $ b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?
Cantor Products sells a product for $81 Varlable costs per unit are $44, and monthly fxed costs are $140.600 21 a. What is the break-even point in units? unids A What unit sales would be required to eam a target profit of $310,800? ratal Resied Sales units FAssume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 declmal places.) Ceye of Operating Leverae
Jacoby Company received an offer from an exporter for 20,500 units of 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 $24 Unit manufacturing costs: Variable $9 Fixed $5 What is the differential revenue from the acceptance of the offer? a.$389,500 b.$881,500 c.$102,500 d.$492,000
Stryker Industries received an offer from an exporter for 24,000 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available: Domestic unit sales price $21 Unit manufacturing costs: Variable 11 Fixed 6 What is the amount of income or loss from acceptance of the offer? a.$168,000 b.$264,000 c.$504,000 d.$432,000
Jacoby Company received an offer from an exporter for 29,500 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: Line Item Description Amount Domestic unit sales price $25 Unit manufacturing costs: Variable 9 Fixed 4 The differential revenue from the acceptance of the offer is a. $1,268,500 b. $206,500 c. $737,500 d. $531,000
Jacoby Company received an offer from an exporter for 26,200 units of 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 $24 Unit manufacturing costs: Variable Fixed 10 d. $131,000 3 The differential revenue from the acceptance of the offer is O a. $628,800 O b. $497,800 Oc. $1,126,600 O
Stryker Industries received an offer from an exporter for 26,000 units of product at $16 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 Fixed 13 6 The amount of profit or loss from acceptance of the offer is a Oa. $78,000 Ob. $338,000 Oc. $416,000 Od. $572,000
Accept Business at Special Price Product A is normally sold for $47 per unit. A special price of $30 is offered for the export market. The variable production cost is $25 per unit. An additional export tariff of 16% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. a. Prepare a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "0". Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) March 16 Reject Acсept Differential Order Order Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Profit (loss), per unit $ b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?
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