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A business received an offer from an exporter for 10,000 units of product at $18 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 $18 per unit. The acceptance of the offer will not affect normal production or the domestic sales price. The following data are available: Domectic sales price...........$25 Unit manufacturing costs: Variable..................$16 Fixed.....................$4 What is the amount of gain or loss from acceptance of the offer? A. $20,000 gain B. $20,000 loss C. $70,000 gain D. $70,000 loss
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