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skelet666 [1.2K]
3 years ago
15

A business received an offer from an exporter for 10,000 units of product at $13.50 per unit. The acceptance of the offer will n

ot affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 12 Fixed 5 What is the amount of the gain or loss from acceptance of the offer
Business
1 answer:
OverLord2011 [107]3 years ago
4 0

Answer:

Effect on income= $15,000 increase

Explanation:

Giving the following information:

A business received an offer from an exporter for 10,000 units for $13.50 per unit.

Unit manufacturing costs:

Variable 12

<u>Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.</u>

Effect on income= number of units*unitary contribution margin

Effect on income= 10,000*(13.5 - 12)

Effect on income= $15,000 increase

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