Question
Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10.40) $ 166,400 Direct materials and direct labor $
Benjamin Company had the following results of operations for the past year:
| Sales (16,000 units at $10.40) | $ | 166,400 | ||||||
| Direct materials and direct labor | $ | 102,400 | ||||||
| Overhead (20% variable) | 22,400 | |||||||
| Selling and administrative expenses (all fixed) | 32,800 | (157,600 | ) | |||||
| Operating income | $ | 8,800 | ||||||
A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,800 units at $8.38 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $680 and selling and administrative costs by $380. Assuming Benjamin has excess capacity and accepts the offer, its profits will:
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Contabilidad Para No Contadores
Authors: Wayne Label
2nd Edition
9587712986, 9789587712988
