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Rylan Corporation received an offer from a potential new customer for 25,000 units of a product at $16 per unit. The acceptance of the offer
Rylan Corporation received an offer from a potential new customer for 25,000 units of a product at $16 per unit. The acceptance of the offer will not affect Rylan's normal production or domestic sales prices. The following data are available:
Domestic unit sales price | $22 |
Unit manufacturing costs: | |
Variable | 11 |
Fixed | 6 |
What is the amount of the income or loss from the acceptance of the offer?
$125,000 loss |
$25,000 income |
$125,000 income |
$25,000 loss |
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