Stryker Industries received an offer from an exporter for 22,000 units of product at $17 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$25Unit manufacturing costs: Variable10 Fixed3The amount of profit or loss from acceptance of the offer is a Stryker Industries received an offer from an exporter for 22,000 units of product at $17 per unit. The acceptance of the offer will not affect normal production or domestic salesprices. The following data are available:$25Domestic unit sales priceUnit manufacturing costs:VariableFixed103The amount of profit or loss from acceptance of the offer is aOa. $374,000Ob. $154,000Oc. $550,000Od. $220,000

In decision making process we consider only incremental cost or relevant cost. Relevant cost is the…

Stryker Industries received an offer from an exporter for 22,000 units of product at $17 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 Unit manufacturing costs: Variable Fixed $25 10 3 The amount of profit or loss from acceptance of the offer is a Oa. $374,000 Ob. $154,000 Oc. $550,000 Od. $220,000

Stryker Industries received an offer from an exporter for 22,000 units of product at $17 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 Unit manufacturing costs: Variable Fixed $25 10 3 The amount of profit or loss from acceptance of the offer is a Oa. $374,000 Ob. $154,000 Oc. $550,000 Od. $220,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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33. Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 25,000 units of product at $17 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 10 Fixed 6 What is the differential cost from the acceptance of the offer? a.$425,000 b.$550,000 c.$250,000 d.$150,000
Stryker Industries received an offer from an exporter for 26,000 units of product at $17 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: $23 Domestic unit sales price Unit manufacturing costs: Variable Fixed 11 5 0 The amount of profit or loss from acceptance of the offer is a Oa. $156,000 Ob. $286,000 Oc. $598,000 Od. $442,000
Stryker Industries received an offer from an exporter for 29,000 units of product at $19 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 $25 Unit manufacturing costs: Variable Fixed 14 5 The differential cost from the acceptance of the offer is Oa. $145,000 Ob. $551,000 Oc. $725,000 Od. $406,000
Stryker Industries received an offer from an exporter for 22,000 units of product at $17 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 Unit manufacturing costs: Variable Fixed $23 12 3 The amount of profit or loss from acceptance of the offer is a Oa. $110,000 Ob. $264,000 Oc. $506,000 Od. $374,000
XYZ Company incurs costs of $ 30 per unit ($18 variable and $12 fixed) to make a product that normally sells for $42. A foreign wholesaler offers to buy 6,000 units at $26 each. The special order results in additional shipping costs of $1 per unit. Calculate the increase or decrease in net income the company realizes by accepting the special order, assuming they have excess operating capacity. Should the Company accept the special order? Select one: a. XYZ should reject the special offer to avoid 42,000 loss. b. XYZ should accept the offer to gain 24,000 net income. c. XYZ should accept the offer to gain 42,000 net income. d. XYZ should reject the special offer to avoid 24,000 loss.
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S1.
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