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Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $9.50) Direct materials and direct labor Overhead (208 variable)

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Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $9.50) Direct materials and direct labor Overhead (208 variable) Selling and administrative expenses (all fixed) Operating income $ 152,000 $88,000 8,000 31,000 (127,000) $ 25,000 A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,000 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: Multiple Choice Increase by $2,700 Increase by $1700 Decease by $2,700

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