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
For any clarifications, please comment.
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