A bid is received from an overseas customer for 1000 phones, Ask an Expert

Accounting

A business currently sells mobile phones in the domestic market for $80. The cost of the phones includes $50 variable cost per unit and $20 fixed cost per unit. A bid is received from an overseas customer for 1,000 phones at a price of $60 per phone. An additional 10% export fee on price would be assessed to the mobile phone company for overseas sales. What would be the differintial income or loss from accepting the overseas bid?

A. $4,000 loss

B. $14,000 loss

C. $4,000 income

D. $10,000 income

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9440693

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