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b. $300,000A business received an offer from an exporter for-(Answered)

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b. $300,000A business received an offer from an exporter for 20,000 units of product at $15 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 $21, Unit Manufacturing cost Variable 12 and Fixed 5

What is the differential revenue from the acceptance of the offer?

a. $420,000

b. $300,000

c. $120,000

d. $240,000




 

Paper#9209640 | Written in 27-Jul-2016

Price : $19
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