Question

Jacoby Company received an offer from an exporter for 21,300 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 $25 Unit manufacturing costs: Variable 13 Fixed 3 The differential revenue from the acceptance of the offer is a.$532,500 b.$894,600 c.$362,100 d.$170,400

Answer 1

Option d.$170,400 is the corect option.

 Incremental Net income

 

Increamental Revenue  $4,52,800

 (28,300 X $ 16 Per unit)

 

Less: Variable Costs $3,11,300

 (28,300 X $ 11 Per unit)

 

Less: Fixed Cost (Not taken because does not affect this due to accepting special orders) = $0

 

Total Net Revenue $170,400

Answer = d.$170,400

To determine the unit price of a product, you first need to calculate the total manufacturing cost of all items manufactured in a particular time period. Then divide the estimate by the number of items. The final number is the manufacturing cost of one unit.

Learn more about Unit manufacturing costs here: https://brainly.com/question/13767214

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