Homework SourseStryker Industries received an offer from an exporter for 15
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 is available:
What is the differential revenue from the acceptance of the offer?
a.$52,500
b.$250,000
c.$300,000
d.$262,500
| Domestic unit sales price | $20 |
| Unit manufacturing costs: | |
| Variable | 11 |
| Fixed | 1 |
Solution
d. $262,500
The differential revenue from the acceptance of the offer is:
= 15,000 units * $17.50
= $262,500
