Stryker Industries received an offer from an exporter for 23,000 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 $25
Unit manufacturing costs:
Variable 12
Fixed 3
The amount of profit or loss from acceptance of the offer is a
a. $276,000
b. $368,000
c. $92,000
d. $575,000