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Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per unit. The acceptance of the offer will not affect
Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available:
Domestic unit sales price | $20 |
Unit manufacturing costs: | |
Variable | 11 |
Fixed | 1 |
What is the amount of income or loss from acceptance of the offer?
a. | $37,500 loss | |
b. | $97,500 income | |
c. | $37,500 income | |
d. | $94,500 loss |
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