Question - A business received an offer from an exporter for 10,000 units of product at $18 per unit. The acceptance of the offer will not affect normal production or the domestic sales price. The following data are available:
Domectic sales price...........$25
Unit manufacturing costs:
Variable..................$16
Fixed.....................$4
What is the amount of gain or loss from acceptance of the offer?
A. $20,000 gain
B. $20,000 loss
C. $70,000 gain
D. $70,000 loss