Question
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 amount of the income or loss from acceptance of the offer?
| a. | $125,000 loss | |
| b. | $25,000 income | |
| c. | $125,000 income | |
| d. | $25,000 loss |
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Thomas Calculus Early Transcendentals
Authors: Joel R Hass, Christopher E Heil, Maurice D Weir
13th Edition
978-0321884077, 0321884078
