Question

Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 26,000 units of product at $17 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 $23 Unit manufacturing costs: Variable 14 Fixed 3 What is the amount of income or loss from the acceptance of the offer? a.$598,000 loss b.$364,000 loss c.$442,000 income d.$78,000 income PreviousNext Basic Calcu

Answer 1

Answer:

Effect on income= $78,000 increase

Explanation:

Giving the following information:

Stryker Industries received an offer from an exporter for 26,000 units of a product at $17 per unit.

Unit manufacturing costs: Variable 14

Because it is a special offer that doesn't affect the current sales, we will not take into account the fixed costs.

Effect on income= 26,000*(17 - 14)= $78,000