Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per...
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: Domestic unit sales price $20 Unit manufacturing costs: Variable 11 Fixed 1 What is the amount of income or loss from acceptance of the offer?
- $97,500 income
- B. $94,500 loss
- C. $37,500 income
- D. $37,500 loss
Homework Answers
Revenue from special order
= 15,000 * 17.50 = 262,500
Relevant cost of making that order
= 15,000 * 11 = 165,000
Income (Loss) = 262,500 - 165,000
= 97,500 income
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