Question
Yellco Inc., a toy manufacturer, provided the following information: Domestic unit sales price $50 Unit manufacturing costs: Variable 10 Fixed 8 The company has received
Yellco Inc., a toy manufacturer, provided the following information:
Domestic unit sales price | $50 |
Unit manufacturing costs: | |
Variable | 10 |
Fixed | 8 |
The company has received an offer from an exporter for 9,000 units of toys at $60 per unit. The additional business is not expected to affect the normal production or domestic sales prices of Yellco Inc. The company's differential revenue from the acceptance of the offer is _____.
a.$153,000
b.$90,000
c.$72,000
d.$378,000
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