Question
Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10.50) $168,000 Direct materials and direct labor $104,000 Overhead
Benjamin Company had the following results of operations for the past year:
| Sales (16,000 units at $10.50) | $168,000 | |
| Direct materials and direct labor | $104,000 | |
| Overhead (20% variable) | 24,000 | |
| Selling and administrative expenses (all fixed) | 33,000 | (161,000) |
| Operating income | $7,000 |
| A foreign company (whose sales will not affect Benjamin's market) offers to buy 5,000 units at $8.60 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $700 and selling and administrative costs by $400. If Benjamin accepts the offer, its profits will: |
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Accountancy And The Changing Landscape Of Integrated Reporting
Authors: Ioana Dragu
1st Edition
1522536221, 9781522536222
