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AreaStryker Industries received an offer from an exporter for 15,000 units of product at $17.50...

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Accounting

AreaStryker 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 is available:

Domestic unit sales price $20

Unit manufacturing costs:

Variable 11

Fixed 1

What is the differential cost from the acceptance of the offer?

a. $200,000

b. $85,500

c. $262,500

d. $165,000

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