Ask Question
16 October, 13:27

The company has received an offer from an exporter for 9,000 units of toys at $60 per unit. The additional business is not expected to affect the normal production or domestic sales prices of Playtime Inc. What is the amount of gain or loss from acceptance of the offer

+4
Answers (1)
  1. 16 October, 13:54
    0
    gain = $45000

    Explanation:

    given data

    exporter = 9,000 units

    toys per unit = $60

    we consider

    Domestic unit sales price = $50

    Unit manufacturing costs:

    Variable = 10

    Fixed = 8

    solution

    as we know that fix cost never change by any offer or off or sale

    so contribution margin will be gain or loss

    so here contribution is

    contribution = $60 - $10

    contribution = $50

    so gain will be

    gain = $50 * 900 units

    gain = $45000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The company has received an offer from an exporter for 9,000 units of toys at $60 per unit. The additional business is not expected to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers