Rylan Corporation received an offer from an exporter for 25,000 units of product at $16 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$22
Unit manufacturing costs: Variable11
Fixed6
?
The amount of the profit or loss from acceptance of the offer is a
A. $125,000 loss
B. $25,000 profit
C. $125,000 profit
D. $25,000 loss
Answer: C
Business
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