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Stryker Industries received an offer from an exporter for 20,000 units of product at $17...

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Accounting

Stryker Industries received an offer from an exporter for 20,000 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 $25
Unit manufacturing costs:
Variable 14
Fixed 5

The differential cost from the acceptance of the offer is

a.$340,000

b.$500,000

c.$100,000

d.$280,000

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