Question

Rylan Corporation received an offer from an exporter for 25,000 units of product at $16 per...

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 amount of the income or loss from acceptance of the offer?

a.$125,000 income

b.$125,000 loss

c.$25,000 income

d.$25,000 loss

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Answer #2

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