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What is the differential revenue from acceptance of offer

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Jacoby Company received an offer from an exporter for 23,800 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 $21

Unit manufacturing costs:

Variable $12

Fixed $5

Problem 1: What is the differential revenue from the acceptance of the offer?

a .$380,800
b. $880,600
c. $499,800
d. $119,000

Reference no: EM132809486

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