A Business Received an Offer from an Exporter for 10,000

question 5

Multiple Choice

A business received an offer from an exporter for 10,000 units of product at $13.50 per unit.The acceptance of the offer will not affect normal production or domestic sales prices.The following data are available: ? $\begin{array}{lr}\text { Domestic unit sales price } & \$ 21 \\\text { Unit manufacturing costs: } & \\\text { Variable } & 12 \\\text { Fixed } & 5\end{array}$ ?
What is the amount of the gain or loss from acceptance of the offer?

• A) $75,000 loss
• B) $40,000 gain
• C) $15,000 gain
• D) $85,000 gain

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Definitions:

Political Regime

The form of government or a set of rules, cultural or social norms, that regulate the operation of a government or institution and its interactions with society.

Proselytizing

The act of attempting to convert someone to another religion or belief system.

Geographic Location

A specific place or position within a larger context, defined by its longitude, latitude, and other geographical factors.

Collective Mind

The shared beliefs, values, and attitudes of a group that shape its behavior and understanding of the world.