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Benjamin Company had the following results of operations for the past year Sales (28,000 units at $10.00) Variable costs Direct materials Direct labor Overhead
Benjamin Company had the following results of operations for the past year Sales (28,000 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Incone $280,000 56,000 112,000 5,600 106,400 22,400 56,000 $28,000 A foreign company (whose sales will not effect Benjamin's market offers to buy 7,000 units at $7.50 per unit, in addition to variable costs, setting these units would increase fed overhead by $1050 and fed selling and administrative costs by $525 Assuming Benjamin has excess capecity and accepts the offerts profits wit Muple Choice increase by $500 De by $10,500 O O case by $10,500 by $53,300 Increase by $7525
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