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59 Help Save & Exit Submit Markson Company had the following results of operations for the past year: Contribution margin income statement Sales (11,600
59 Help Save & Exit Submit Markson Company had the following results of operations for the past year: Contribution margin income statement Sales (11,600 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Income Per Unit $ 20.00 Annual Total $ 232,000 4.25 49,300 6.00 69,600 2.00 23,200 7.75 89,900 4.25 49,300 $ 3.50 $ 40,600 A foreign company offers to buy 3,800 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $3,040 for the purchase of special tools. Markson's annual productive capacity is 17,400 units. If Markson accepts this additional business, its profits will: Multiple Choice Increase by $3,610. Decrease by $3,040.
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