Ask Question
31 August, 08:02

Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 26,000 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 $23 Unit manufacturing costs: Variable 14 Fixed 3 What is the amount of income or loss from the acceptance of the offer? a.$598,000 loss b.$364,000 loss c.$442,000 income d.$78,000 income PreviousNext Basic Calcu

+1
Answers (1)
  1. 31 August, 08:28
    0
    Effect on income = $78,000 increase

    Explanation:

    Giving the following information:

    Stryker Industries received an offer from an exporter for 26,000 units of a product at $17 per unit.

    Unit manufacturing costs: Variable 14

    Because it is a special offer that doesn't affect the current sales, we will not take into account the fixed costs.

    Effect on income = 26,000 * (17 - 14) = $78,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for ...” 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