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Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10.15) Direct materials and direct labor Overhead (20% variable)
Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10.15) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,300 units at $7.83 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $630 and selling and administrative costs by $330. Assuming Benjamin has excess capacity and accepts the offer, its profits will: Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10.15) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,300 units at $7.83 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $630 and selling and administrative costs by $330. Assuming Benjamin has excess capacity and accepts the offer, its profits will
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