A business received an offer from an exporter for 20,000 units of product at $15

Question

A business received an offer from an exporter for 20,000 units of product at $15per 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 costs: Variable 12 Fixed 5 What is the amount of the gain or loss from the acceptance of the offer?
A) $35,000 loss
B) $40,000 gain
C) $60,000 gain
D) $50,000 gain


to me it looks like 40,000 gain but the ANS says 60,000 so i dont know.. help and explain

Explanation / Answer

20,000($21-$15)/2=$60,000 gain So C) $60,000 gain

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