Jacoby Company received an offer from an exporter for 22,500 units of product at $16 per unit. The acceptance of the offer will not affect normal pro or domestic sales prices. The following data are available: Domestic unit sales price $23 Unit manufacturing costs: Variable Fixed 12 The differential revenue from the acceptance of the offer is O $360,000 Ob. 5877,500 c. $157,500 d. $517,500

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 6BE
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Jacoby Company received an offer from an exporter for 22,500 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 $23
Unit manufacturing costs:
12
6
The differential revenue from the acceptance of the offer is
Ⓒa $360,000
Ob. 5877,500
Variable
Fixed
c. $157,500
Od. $$17,500
Transcribed Image Text:Jacoby Company received an offer from an exporter for 22,500 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $23 Unit manufacturing costs: 12 6 The differential revenue from the acceptance of the offer is Ⓒa $360,000 Ob. 5877,500 Variable Fixed c. $157,500 Od. $$17,500
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