Yellco Inc., a toy manufacturer, provided the following information: ? $$\begin{array} { l r }
\text { Domestic unit sales price } & \$ 50 \
\text { Unit manufacturing costs: } & \
\text { Variable } & 10 \
\text { Fixed } & 8
\end{array}$$ ??
The company has received an offer from an exporter for 9,000 units of toys at $60 per unit.The additional business is not expected to affect the normal production or domestic sales prices of Yellco Inc.The company's differential revenue from the acceptance of the offer is _____.
A) $450,000
B) $720,000
C) $540,000
D) $225,000

Question

Yellco Inc., a toy manufacturer, provided the following information: ? $$\begin{array} { l r } 
\text { Domestic unit sales price } & \$ 50 \
\text { Unit manufacturing costs: } & \
\text { Variable } & 10 \
\text { Fixed } & 8
\end{array}$$ ??
The company has received an offer from an exporter for 9,000 units of toys at $60 per unit.The additional business is not expected to affect the normal production or domestic sales prices of Yellco Inc.The company's differential revenue from the acceptance of the offer is _____.
A) $450,000
B) $720,000
C) $540,000
D) $225,000

Quizplus · Accepted Answer

The differential revenue from accepting the offer is calculated by multiplying the offer price per unit by the number of units offered. Thus, $60 per unit * 9,000 units = $540,000.

Yellco Inc ?? the Company Has Received an Offer from an Exporter

Yellco Inc ??
the Company Has Received an Offer from an Exporter