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QUESTION
A business received an offer from an exporter for 10,000 units of product at $18 per unit. The acceptance of the offer will not affect normal...
A business received an offer from an exporter for 10,000 units of product at $18 per unit. The acceptance of the offer will not affect normal production or the domestic sales price. The following data are available:Domectic sales price...........$25Unit manufacturing costs:Variable..................$16Fixed.....................$4What is the amount of gain or loss from acceptance of the offer?A. $20,000 gainB. $20,000 lossC. $70,000 gainD. $70,000 loss
A business received an offer from an exporter for 10,000 units of product at $18 per unit. The acceptance of the offer will not affect normal production or the domestic sales price. The following...