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Rylan Corporation received an offer from an exporter for 25,000 units of a product at $16 per unit. Rylan has the capacity to produce 50,000
Rylan Corporation received an offer from an exporter for 25,000 units of a product at $16 per unit. Rylan has the capacity to produce 50,000 units and is currently producing 15,000 units. The acceptance of the offer will not affect current 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?
Question 10 options:
| $125,000 loss |
| $25,000 income |
| $125,000 income |
| $25,000 loss |
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