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3 Stryker Industries received an offer from an exporter for 30,000 units of product at $16 per unit. The acceptance of the offer will not

3

Stryker Industries received an offer from an exporter for 30,000 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

$24

Unit manufacturing costs:

Variable

11

Fixed

6

What is the amount of income or loss from the acceptance of the offer?

a. $480,000 income

b. $150,000 income

c. $330,000 loss

d. $720,000 loss

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