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Benjamin Company had the following results of operations for the past year: Sales (20,000 units at $10.00) $ 200,000 Variable costs Direct materials 40,000 Direct

Benjamin Company had the following results of operations for the past year:

Sales (20,000 units at $10.00) $ 200,000
Variable costs
Direct materials 40,000
Direct labor 80,000
Overhead 4,000
Contribution margin 76,000
Fixed costs
Fixed overhead 16,000
Fixed selling and administrative expenses 40,000
Income $ 20,000

A foreign company (whose sales will not affect Benjamins market) offers to buy 5,000 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $750 and fixed selling and administrative costs by $375. Assuming Benjamin has excess capacity and accepts the offer, its profits will:

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