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

question 22

Multiple Choice

A business received an offer from an exporter for 10,000 units of product at $17.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available: What is the differential revenue from the acceptance of the offer?

• A) $200,000
• B) $175,000
• C) $130,000
• D) $140,000

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Definitions:

Speculative Processes

Activities or operations carried out with the intention to profit from fluctuations in pricing or markets, often involving a degree of risk.

Customer Order Entry

The process by which a customer's order is received, processed, and entered into a company's order management system.

Product Receipt

Product receipt refers to the process of receiving goods or inventory, documenting their arrival, and updating inventory records accordingly.

Complete Payment

A financial transaction where the full amount owed is paid by the buyer to the seller.