Question
Stryker Industries received an offer from an exporter for 22,000 units of product at $18 per unit. The acceptance of the offer will not affect
Stryker Industries received an offer from an exporter for 22,000 units of product at $18 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 | $23 |
| Unit manufacturing costs: | |
| Variable | 14 |
| Fixed | 3 |
What is the differential cost from the acceptance of the offer?
a.$66,000
b.$308,000
c.$506,000
d.$396,000
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th edition
978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286
