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A business received an offer from an exporter for 10,000 units of product at $18 per unit. The acceptance of the offer will not affect normal production or the domestic sales price. The following data are available:

Domectic sales price...........$25
Unit manufacturing costs:
Variable..................$16
Fixed.....................$4

What is the amount of gain or loss from acceptance of the offer?

A. $20,000 gain

B. $20,000 loss

C. $70,000 gain

D. $70,000 loss

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M990392

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