Question Content Area

Jacoby Company received an offer from an exporter for 20,900 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:

Line Item Description	Amount
Domestic unit sales price	$24
Unit manufacturing costs:
Variable	9
Fixed	3

The differential revenue from the acceptance of the offer is

a.$376,200

b.$877,800

c.$125,400

d.$501,600