Find the amount of profit or loss from acceptance of offer

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Question - Stryker Industries 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 14 Fixed 4

Find the amount of profit or loss from acceptance of the offer?

a. $50,000

b. $550,000

c. $400,000

d. $350,000

Reference no: EM132591538

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