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$ 349,600 Sales (18,400 units at $19) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $92, eee
$ 349,600 Sales (18,400 units at $19) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $92, eee 18,400 34,960 (145,360) $ 204,240 A foreign company offers to buy 4,600 units at $15.20 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $780 and selling and administrative costs by $740. Assuming Benjamin's productive capacity is 18,400 units per year and it accepts the offer, its profits will: Multiple Choice Decrease by $ 186,760 O Decrease by $17480 Increase by $ 15.30 Decrease by $19.000
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