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 are available: Domestic unit sales price $20 Unit manufacturing costs:       Variable 11     Fixed 1 The differential revenue from the acceptance of the offer is a.$300,000 b.$52,500 c.$250,000 d.$262,500

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 6BE
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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 normal production or domestic sales prices. The following data are available:

Domestic unit sales price $20
Unit manufacturing costs:  
    Variable 11
    Fixed 1

The differential revenue from the acceptance of the offer is

a.$300,000
b.$52,500
c.$250,000
d.$262,500
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