Question Content Area

Rylan Corporation received an offer from an exporter for 25,000 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:

Line Item Description	Amount
Domestic unit sales price	$22
Unit manufacturing costs:
Variable	11
Fixed	6

The differential cost from the acceptance of the offer is

a.$550,000

b.$125,000

c.$275,000

d.$150,000