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:

Rent Payment

The amount paid periodically by a tenant to a landlord in exchange for the use of a property, room, or apartment.

Unearned Rent Revenue

Income received by a landlord for rent that has been paid in advance but is not yet earned as the period has not occurred.

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed, recognized as a liability.

Season Tickets

Prepaid tickets allowing entry to a series of events, typically for sports or theatrical seasons, offering a discount over purchasing individually.