Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 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 $20
Unit manufacturing costs:
Variable 11
Fixed 1
1. What is the amount of income or loss from acceptance of the offer?
a. $94,500 loss
b. $97,500 income
c. $37,500 loss
d. $37,500 income
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