Question

Stryker Industries received an offer from an exporter for 27,000 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 $21 Unit manufacturing costs: Variable 11 Fixed 3 What is the amount of income or loss from the acceptance of the offer

Answer 1

Answer:

$162,000

Explanation:

Income Statement - New Offer

Sales (27,000 x $17)                                           $459,000

Less Variable Costs of the offer :

Variable manufacturing costs (27,000 x $11)  ($297,000)

Net Income (Loss)                                               $162,000

therefore,

the amount of income  from the acceptance of the offer is $162,000