Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Find reliable answers to your questions from a wide community of knowledgeable experts on our user-friendly Q&A platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

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 :

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