Stryker Industries received an offer from a potential new customer to buy from Stryker 15,000 units of a product at $17.50 per unit. The acceptance of the offer will not affect Stryker's normal production or domestic sales prices. The following data are available:
Domestic unit sales price |
$20
|
Unit manufacturing costs: |
|
Variable |
11
|
Fixed |
1
|
What is the amount of income or loss from the acceptance of the offer?
$97,500 income
$94,500 loss
$37,500 income
$37,500 loss