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1 January, 14:12

Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 26,000 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 $23 Unit manufacturing costs: Variable 14 Fixed 3 What is the amount of income or loss from the acceptance of the offer? a.$598,000 loss b.$364,000 loss c.$442,000 income d.$78,000 income PreviousNext Basic Calcu

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  1. 1 January, 15:46
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    Effect on income = $78,000 increase

    Explanation:

    Giving the following information:

    Stryker Industries received an offer from an exporter for 26,000 units of a product at $17 per unit.

    Unit manufacturing costs: Variable 14

    Because it is a special offer that doesn't affect the current sales, we will not take into account the fixed costs.

    Effect on income = 26,000 * (17 - 14) = $78,000
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