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A business received an offer from an exporter for 10,000 units of product at $17 per unit. The acceptance of the offer will not affect
A business received an offer from an exporter for 10,000 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 | $20 |
Unit manufacturing costs: | |
Variable | 11 |
Fixed | 1 |
What is the amount of gain or loss from acceptance of the offer?
1. | $60,000 gain | |
2. | $30,000 loss | |
3. | $20,000 loss | |
4. | $50,000 loss |
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