Question
Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10) $160,000 Direct materials and direct labor $80,000 Overhead
Benjamin Company had the following results of operations for the past year:
Sales (16,000 units at $10) |
| $160,000 |
Direct materials and direct labor | $80,000 |
|
Overhead (20% variable) | 32,000 |
|
Selling and administrative expenses (all fixed) | 32,000 | (144,000) |
Operating income |
| $ 16,000 |
A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,000 units at $8.25 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $800 and selling and administrative costs by $1,600.
Assuming Benjamin has excess capacity and accepts the offer, the incremental income will be _________
DON'T USE COMMA SEPARATORS
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