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A business received an offer from an exporter for 10,000 units of product at $17.50 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 $17.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available: Domestic unit sales price $20 Unit manufacturing costs: Variable 11 Fixed 1 What is the differential cost from the acceptance of the offer? A. $200,000 B. $175,000 C. $140,000 D. $110,000
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