Stryker Industries received an offer from an exporter for 29,000 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$25Unit manufacturing costs:VariableFixed145The differential cost from the acceptance of the offer isOa. $145,000Ob. $551,000Oc. $725,000Od. $406,000

Differential cost : Difference between the two cost alternative is called the Differential cost.…

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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Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 30,000 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 $23 Unit manufacturing costs: Variable 10 Fixed 5 What is the amount of income or loss from the acceptance of the offer? Oa. $300,000 loss Ob. $690,000 loss Oc. $570,000 income Od. $270,000 income Previous Next 7:36 PM CP 12/13/2020
Custom Value Products makes and sells a single product in a 7-state area. Information for their product is below: $281.00 185.00 Unit Selling Price Unit Variable Cost Total Fixed Cost $3,400,000 Expected sales 12,000 units Required: Use the CVP template to calculate the company's break-even point in both units and sales dollars as well as their expected income for next year at their planned sales volume. Ignore income taxes for this calculation. If the company's variable cost of manufacturing decreases by 5% next year and they reduce their selling price by 5%, will their break-even point and expected income increase or decrease? Show calculations. Explain in your own words how adding another product to their offerings would change their CVP calculations.
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
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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
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Stryker Industries received an offer from an exporter for 21,000 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 $21 Unit manufacturing costs: Variable Fixed 9 4 The differential cost from the acceptance of the offer is O a. $189,000 O b. $441,000 O c. $84,000 O d. $357,000

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