38 Per Unit $ 22.00 Annual Total $ 440,000 Cornish Company had the following results of operations for the past year: Contribution margin income statement Sales (20,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income 4.00 6.00 2.00 10.00 80,000 120,000 40,000 200,000 3.00 4.60 60,000 92,000 $ 48,000 $ 2.40 A foreign company offers to buy 3,000 units at $17.00 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $600 and fixed selling and administrative costs by $900. If Cornish accepts the offer, its profits will: 38 Multiple Choice Decrease by $4,500 Increase by $4,500 Decrease by $300. Increase by $13,500. O Increase by $15,000. MC