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Benjamin Company had the following results of operations for the past year: $ 332,500 Sales (17,500 units at $19) Direct materials and direct labor Overhead
Benjamin Company had the following results of operations for the past year: $ 332,500 Sales (17,500 units at $19) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $140,000 17,500 22,750 (180,250) $ 152,250 A foreign company offers to buy 4,375 units at $15.20 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $750 and selling and administrative costs by $860. Assuming Benjamin's productive capacity is 17,500 units per year and it accepts the offer, its profits will: Multiple Choice Decrease by $ 135,625. O Decrease by $16,625. Increase by $ 15,015. O Decrease by $18,235. Increase by $5,235
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