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Jacoby Company received an offer from an exporter for 27,700 units of product at $17 per unit. The acceptance of the offer will not affect
Jacoby Company received an offer from an exporter for 27,700 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 manufacturing costs: $23 Variable Fixed 12 5 The differential revenue from the acceptance of the offer is a. $166,200 b. $637,100 c. $1,108,000 Od. $470,900 Lara Technologies is considering a total cash outlay of $193,000 for the purchase of land, which it could lease for $33,980 per year. If alternative investments are available that yield a 16% return, the opportunity cost of the purchase of the land is a. $3,100 Ob. $30,880 c. $33,980 d. $64,860 Delaney Company is considering replacing equipment that originally cost $541,000 and has accumulated depreciation of $378,700 to date. A new machine will cost $834,000. The sunk cost in this situation is a. $129,840 b. $162,300 Oc. $671,700 Od. $541,000
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