Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:
-The differential cost from the acceptance of the offer is
A)$200,000
B)$262,500
C)$85,500
D)$165,000

Question

Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:  ​
-The differential cost from the acceptance of the offer is
A)$200,000 
B)$262,500 
C)$85,500 
D)$165,000

Quizplus · Accepted Answer

Differential cost refers to the difference in total cost between two alternatives. The correct choice is based on the specific cost data provided in the scenario, which indicates that the differential cost from accepting the offer is $165,000.

Stryker Industries Received an Offer from an Exporter for 15,000