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

question 18

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:

Distribution

The process of making a product or service available for the consumer or business user that needs it, which can include warehousing, transportation, and logistics.

Entrepreneurial Ability

The capacity to innovate, introduce new products or services, improve processes or business models, and effectively manage and grow a business under conditions of uncertainty.

Production Technique

Production technique refers to the method or process used in transforming inputs into outputs in the production of goods or services.

Total Profits

The total income of a business after all expenses have been deducted from total revenues.