Question

Incorrect A business received an offar from an exporter for 5,000 units of product at $10 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available $12 Domestic unit sales price Unit manufacturing costs: ariable 9 Fixed Based on the above data, what is the differeatial cost from the acceptance of the offer? Select one: a. $45,000 $40,000 12 $5,000 $10,000 x Incorrect

Answer 1

Calculation of differential cost:

Differential cost= number of units*(10-9)

Differential cost= 5000*1= 5000

So correct answer is C) $5000