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Benjamin Company had the following results of operations for the past year: Sales (17,600 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution
Benjamin Company had the following results of operations for the past year: Sales (17,600 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income Multiple Choice O A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,400 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $660 and fixed selling and administrative costs by $330. Assuming Benjamin has excess capacity and accepts the offer, Its profits will: O Increase by $4.730. Decrease by $6,600. Increase by $33,000. Increase by $6,600. $ 176,000 Increase by $5,720. 35,200 70,400 3,520 66,880 14,080 35,200 $ 17,600
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