A business received an offer from an exporter for 5,000 units of product at $10 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: $\begin{array}{lrr}
\text { Domestic urit sales price } &\$12\
\text { Unit manufactuing costs } &\
\text { Variable } &9\
\text { Fixed} &1\
\end{array}$

Based on the above data, what is the differential cost from the acceptance of the offer?
A) $10,000
B) $40,000
C) $5,000
D) $45,000

Question

A business received an offer from an exporter for 5,000 units of product at $10 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: $\begin{array}{lrr}
  \text { Domestic urit sales price } &\$12\
 \text { Unit manufactuing costs } &\
 \text {  Variable } &9\
 \text {  Fixed} &1\
\end{array}$

Based on the above data, what is the differential cost from the acceptance of the offer?
A) $10,000
B) $40,000
C) $5,000
D) $45,000

Quizplus · Accepted Answer

The Answer of A business received an offer from an exporter for 5,000 units of product at $10 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: $\begin{array}{lrr}
  \text { Domestic urit sales price } &\$12\
 \text { Unit manufactuing costs } &\
 \text {  Variable } &9\
 \text {  Fixed} &1\
\end{array}$

Based on the above data, what is the differential cost from the acceptance of the offer?
A) $10,000
B) $40,000
C) $5,000
D) $45,000

A Business Received an Offer from an Exporter for 5,000