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Stryker Industries received an offer from an exporter for 25,000 units of product at $18...

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Question

Accounting

Stryker Industries received an offer from an exporter for 25,000 units of product at $18 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
$23
Unit manufacturing costs:
Variable
11
Fixed
4
The amount of profit or loss from acceptance of the offer is a
a. $450,000
b. $175,000
c. $575,000
d. $275,00
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