Question

Yellco Inc., a toy manufacturer, provided the following information: Domestic unit sales price $50 Unit manufacturing costs: Variable 10 Fixed 8 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 _____.

Answer 1

Answer:

$540,000

Explanation:

Calculation for The company's differential revenue from the acceptance of the offer

Using this formula

Differential revenue = Number of units of export order * Offer price per unit

Let plug in the formula

Differential revenue=9,000*$60

Differential revenue= $540,000

Therefore the company's differential revenue from the acceptance of the offer is $540,000