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What the amount of profit from acceptance of the offer

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Reference no: EM132589876

Stryker Industries 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 14

Fixed 4

Question 1: The amount of profit or loss from acceptance of the offer is a

a. $50,000

b. $550,000

c. $400,000

d. $350,000

Reference no: EM132589876

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