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Benjamin co Sales (16000 units ar 10 160,000 Direct materials and direct labor 96000 Overhead (20% variable) 16000 Selling and Adm Exp 32000 Operating income

Benjamin co

Sales (16000 units ar 10 160,000

Direct materials and direct labor 96000

Overhead (20% variable) 16000

Selling and Adm Exp 32000

Operating income 16000

A foreign company offers fo buy 4000 units at 7.50 per unit. In addition to variable mfg. cost, selling these units would increade fixed overhead by 600 and selling and adm cost by 300. Assuming Benjamin has excess capacity and accepts the offer, its profits will:

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