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What is the differential cost from the acceptance of offer

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Reference no: EM131794550

Problem

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 differential cost from the acceptance of the offer?

a. $125,000
b. $550,000
c. $275,000
d. $150,000.

Reference no: EM131794550

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