FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
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:
What is the amount of the income or loss from acceptance of the offer?
Domestic unit sales price | $22 |
Unit |
|
Variable | 11 |
Fixed | 6 |
What is the amount of the income or loss from acceptance of the offer?
a. $125,000 loss
b. $125,000 income
c. $25,000 loss
d. $25,000 income
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