Rylan Corporation received an offer from an exporter for 25,000 units of product at $16 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 $22
Unit manufacturing costs:
Variable 11
Fixed 6
What is the differential cost from the acceptance of the offer?
a. $125,000 incomeb. $25,000 lossc. $125,000 lossd. $25,000 income
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