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

question 34

Multiple Choice

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 cost from the acceptance of the offer is _____.

• A) $72,000
• B) $378,000
• C) $153,000
• D) $90,000

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