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A foreign company offers to buy 2,300 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would
A foreign company offers to buy 2,300 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1,840 for the purchase of special tools. Markson's annual productive capacity is 12,900 units. If Markson accepts this additional business, its profits will: Contribution margin income statement Sales (8,600 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Income $ 20.00 Per Unit Annual Total $ 172,000 4.25 36,550 6.00 51,600 2.00 17,200 7.75 66,650 4.25 36,550 $ 3.50 $ 30,100
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