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22 May, 00:59

Stryker Industries received an offer from an exporter for 22,000 units of product at $17 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available: Domestic unit sales price $24 Unit manufacturing costs: Variable 11 Fixed 4 What is the amount of income or loss from acceptance of the offer?

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  1. 22 May, 02:44
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    132,000

    Step-by-step explanation:

    The computation of the amount of income or loss is shown below:

    = (Offer price - variable cost per unit) * number of units of production

    = ($17 - $11) * 22,000

    = $6 * 22,000

    = $132,000

    We do not considered the fixed cost and the domestic unit sales as it is not relevant for the computation part. Hence, ignored it

    Offer price - variable cost per unit shows the gain per unit arise
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