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Benjamin Company had the following results of operations for the past year Sales (16,000 units at $9.50) $ 152,000 Direct materials and direct labor
Benjamin Company had the following results of operations for the past year Sales (16,000 units at $9.50) $ 152,000 Direct materials and direct labor S 88,000 Overhead (20% variable) Selling and administrative expenses (all fixed) 8000 31,000 Operating income $ (127,000) 25,000 2 points Save Answe A foreign company (whose sales will not affect Benjamin's market) offers to buy 3000 units at $6.40 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $500 and selling and administrative costs by $200. Assuming Benjamin has excess capacity and accepts the offer, its profits will Increase by $19,200 O Increase by $1700 O Increase by $2400. Increase by $2700. Decease by $2700.
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