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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 $25 Unit manufacturing costs: Variable Fixed 14 5 The differential cost from the acceptance of the offer is Oa. $145.000 Ob. $551.000 Oc. $725,000 Od. $406,000

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 $25 Unit manufacturing costs: Variable Fixed 14 5 The differential cost from the acceptance of the offer is Oa. $145.000 Ob. $551.000 Oc. $725,000 Od. $406,000

FINANCIAL ACCOUNTING
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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**Problem Description:** 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:** $25 - **Unit manufacturing costs:** - Variable: $14 - Fixed: $5 **Question:** The differential cost from the acceptance of the offer is: - a. $145,000 - b. $551,000 - c. $725,000 - d. $406,000
Transcribed Image Text:**Problem Description:** 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:** $25 - **Unit manufacturing costs:** - Variable: $14 - Fixed: $5 **Question:** The differential cost from the acceptance of the offer is: - a. $145,000 - b. $551,000 - c. $725,000 - d. $406,000
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