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Could you please explain step by step how to resolve this question? Thank you :) Stryker Industries received an offer from an exporter for 15,000
Could you please explain step by step how to resolve this question? Thank you :)
Stryker Industries received an offer from an exporter for 15,000 units of a product at $17.50 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 |
The differential revenue from the acceptance of the offer is
a.$262,500
b.$300,000
c.$250,000
d.$52,500
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