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Stryker Industries received an offer from an exporter for 24,000 units of product at $17 per unit. The acceptance of the offer will not affect
Stryker Industries received an offer from an exporter for 24,000 units of product at $17 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:
Line Item Description | Amount |
---|---|
Domestic unit sales price | $24 |
Unit manufacturing costs: | |
Variable | 10 |
Fixed | 4 |
The differential cost from the acceptance of the offer is
a. $408,000
b. $96,000
c. $576,000
d. $240,000
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