22. Thompson Company had the following results of operations for the past year Sales (16,000 units at $10) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $160,000 $96,000 ed)12000 16,000 32.000 (44.000) $16,000 A foreign company (whose $7.50 per unit. In addition to variable manufacturing costs, selling fixed overhead by $600 and selling and administrative costs by $300. If Thompson accepts the offer, its profits will: A. Increase by $30,000. B. Increase by $6,000. C. Decrease by $6,000. D. Increase by $5,200 E. Increase by $4,300. sales will not affect Thompson's market) offers to buy 4,000 units at these units would increase 23. A company has already incurred a $12,000 cost in partially producing its two products. Their selling prices when partially and fully processed are shown in the following table with the additional costs necessary to finish their processing. Based on this information, should any products be processed further? Further Processing Costs S65 89 Unfinished Finished Processing Selling Price Selling Price Product $775 B 800888 $700 A. Both product A and product B should be processed further. B. Neither product A nor product B should be processed further. C. Only product B should be processed further. D. Only product A should be processed further. E. A processing further decision cannot be made from the available data