A business received an offer from an exporter for 25,354 units of product at $16
ID: 2381527 • Letter: A
Question
A business received an offer from an exporter for 25,354 units of product at $16.00 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
$24.00
Unit manufacturing costs:
Variable
$9
Fixed
$5
Determine the amount of gain or loss from the acceptance of the offer.
Select the correct answer.
a. a. 608,496.00
b. b. 228,186.00
c. c. 405,664.00
d. d. 177,478.00
Domestic unit sales price
$24.00
Unit manufacturing costs:
Variable
$9
Fixed
$5
Explanation / Answer
gain = 25354 * (16-9)= 177478
d is the answer
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