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Benjamin Company had the following results of operations for the past year Sales (16,000 units at $9.98) Direct materials and direct labor Overhead (20% variable)

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Benjamin Company had the following results of operations for the past year Sales (16,000 units at $9.98) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income 158,48e $94,400 14,480 31,800 (140,600) $ 17,800 A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,800 units at $7.28 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $580 and selling and administrative costs by $280 Assuming Benjamin has excess capacity and accepts the offer, its profits will: Multiple Choice Increase by $5,244 Next Rey 17 of 30 Increase by $5,244 Increase by $4,560. Increase by $27664. Increase by $3,700 Decease by $5.244 Prev17 of 30

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