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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
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:
Domestic unit sales price $22
Unit manufacturing costs:
Variable 11
Fixed 6
What is the differential cost from the acceptance of the offer?
A) $125,000 loss
B) $25,000 income
C) $125,000 income
D) $25,000 loss
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