**Stryker Industries Case Study**Stryker Industries received an offer from an exporter for 26,000 units of product at $17 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:** $23- **Unit manufacturing costs:** - **Variable:** $11 - **Fixed:** $5**The amount of profit or loss from acceptance of the offer is:**- a. $156,000- b. $286,000- c. $598,000- d. $442,000**Analysis:**To determine the profit or loss, consider the offer price and the unit manufacturing costs. The key is to compare the revenue from the offer against the variable and fixed costs per unit to calculate the total profit or loss from the additional units sold under this specific export offer. Since fixed costs remain constant, we focus on the variable costs. Calculate the profit per unit as follows:1. Export offer price per unit: $172. Variable cost per unit: $113. Contribution margin per unit: $17 - $11 = $6Calculate total contribution for 26,000 units:4. Total contribution: 26,000 units * $6/unit = $156,000Hence, the correct profit from the acceptance of the offer is option **a. $156,000**.

The export order is a special order and hence this will not affect the normal domestic sales.…

Stryker Industries received an offer from an exporter for 26,000 units of product at $17 per unit. The acceptance the offer will not affect normal production or domestic sales prices. The following data are available: $23 Domestic unit sales price Unit manufacturing costs: Variable Fixed 11 5 The amount of profit or loss from acceptance of the offer is a

Stryker Industries received an offer from an exporter for 26,000 units of product at $17 per unit. The acceptance the offer will not affect normal production or domestic sales prices. The following data are available: $23 Domestic unit sales price Unit manufacturing costs: Variable Fixed 11 5 The amount of profit or loss from acceptance of the offer is a

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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