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Calculator Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $31 per pound and costs $29 per

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Calculator Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $31 per pound and costs $29 per pound to produce. Product C would sell for $61 per pound and would require an additional cost of $22 per pound to produce. What is the differential cost of producing Product C? a. $61 per pound b. $22 per pound c. $31 per pound d. $29 per pound Jacoby Company received an offer from an exporter for 23,400 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 Unit manufacturing costs: Variable $14 Fixed What is the differential revenue from the acceptance of the offer? Ca. $374,400 b. $585,000 c. $210,600 d. $959,400 Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 25,000 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 unit sales price $25 Unit manufacturing costs: Variable Fixed What is the amount of income or loss from the cceptance of the offer? Ca. $625,000 loss b. $425,000 income c. $275,000 loss d. $150,000 income Starling Co. is considering disposing of a machine with a book value of $23,700 and estimated remaining life of five years. The old machine can be sold for $5,200. A new high-speed machine can be purchased at a cost of $69,900. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,200 to $19,900 if the new machine is purchased. The differential effect on income for the new machine for the entire five years is an) a decrease of $48,200 b. decrease of $62,660 Cc. Increase of $62,660 d. Increase of $48,200

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