Stryker Industries received an offer from an exporter for 15000 units of product at $1750 per unit The acceptance of the offer will not affect normal production or domestic sales prices The following

The manufacturing cost per unit is $12 ($11 variable + $1 fixed). Therefore, the differential cost per unit is $5 ($20 domestic sales price - $15 exporter offer price - $12 manufacturing cost).

The differential cost for 15,000 units is:

$5 x 15,000 = $75,000

Therefore, the correct answer is c. $85,500 (which is the differential cost of $75,000 plus the revenue of $15 x 15,000 units).