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2 Jacoby Company received an offer from an exporter for 21,800 units of product at $19 per unit. The acceptance of the offer will not
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Jacoby Company received an offer from an exporter for 21,800 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 | $3 |
What is the differential revenue from the acceptance of the offer?
a. $545,000
b. $959,200
c. $130,800
d. $414,200
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