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What is the differential cost from the acceptance of offer

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Reference no: EM133184729

Question - Stryker Industries received an offer from an exporter for 24,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available:

Domestic unit sales price

$23

Unit manufacturing costs:

   Variable

14

   Fixed

4

Required - What is the differential cost from the acceptance of the offer?

a. $96,000

b. $336,000

c. $552,000

d. $384,000

Reference no: EM133184729

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