41)

Benjamin Company had the following results of operations for the past year:

Sales (17,600 units at $10.00)	$ 176,000
Variable costs
Direct materials	35,200
Direct labor	70,400
Overhead	3,520
Contribution margin	66,880
Fixed costs
Fixed overhead	14,080
Fixed selling and administrative expenses	35,200
Income	$ 17,600

A foreign company (whose sales will not affect Benjamins market) offers to buy 4,400 units at $7.50 per unit. In addition to variable 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:

Increase by $33,000.

Decrease by $6,600.

Increase by $4,730.

Increase by $6,600.

Increase by $5,720.