Question
9) Benjamin Company had the following results of operations for the past year: Sales (21,600 units at $10.00) Variable costs Direct materials Direct labor
9) Benjamin Company had the following results of operations for the past year: Sales (21,600 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead $216,000 43.200 86,400 4,320 82,080 17,280 $ 21,600 Fixed selling and administrative expenses43,200 Income A foreign company (whose sales will not affect Benjamin's market) offers to buy 5,400 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $810 and fixed selling and administrative costs by $405. Assuming Benjamin has excess capacity and accepts the offer, its profits will:
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