Answered

Discover new knowledge and insights with IDNLearn.com's extensive Q&A platform. Our platform offers detailed and accurate responses from experts, helping you navigate any topic with confidence.

Wilson Co. produces tennis rackets. A customer has offered Wilson Co. $400 per unit for 200 units. To fill the order, Wilson would incur unit-level costs of $300 per unit and batch-level costs of $1,000. Wilson also incurred $10,000 of product-level costs to design the racket and $100,000 of facility-level costs. Calculate the amount of differential revenue.

Sagot :

Abiolataiwo2015idn

Answer:

$80,000

Explanation:

Calculation to determine the amount of differential revenue

Using this formula

Differential revenue=Per units*Number of units

Let plug in the formula

Differential revenue=$400 x 200 units

Differential revenue= $80,000

Therefore the amount of differential revenue is $80,000

We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Thank you for visiting IDNLearn.com. We’re here to provide clear and concise answers, so visit us again soon.