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$ 176,000 SALES (7.600 UNITS AT $10.00) VARIABLE COSTS DIRECT MATERIALS DIRECT LABOR OVERHEAD CONTRIBUTION MARGIN FIXED COSTS FIXED OVERHEAD FIXED SELLING AND ADMINISTRATIVE EXPENSES
$ 176,000 SALES (7.600 UNITS AT $10.00) VARIABLE COSTS DIRECT MATERIALS DIRECT LABOR OVERHEAD CONTRIBUTION MARGIN FIXED COSTS FIXED OVERHEAD FIXED SELLING AND ADMINISTRATIVE EXPENSES INCOME 35,200 70,400 3.520 66.880 14.080 35,200 $17.600 A foreign company (whose sales will not affect Benjamin's market) offers to buy 4.400 units at $7.50 per unit. In addition to vanable costs, selling these units would increase fixed overhead by $660 and fixed selling and administrative costs by $330. Assuming Benjamin has excess capacity and accepts the offer, its profits will: Multiple Choice O Increase by $33,000 O Decreate by 86,600 O Increase by $5,720
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