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Benjamin Company had the following results of operations for the past year Sales (16,000 units at $10) $160,000 Direct materials and direct labor 596,000 Overhead
Benjamin Company had the following results of operations for the past year Sales (16,000 units at $10) $160,000 Direct materials and direct labor 596,000 Overhead (20. variable) 16,000 Selling and administrative expenses (all fixed) 32.000 44.000 Operating income $16.000 A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,000 units at $7.50 per unit in addition to variable manufacturing costs, selling these units would increase fixed overhead by $600 and selling and administrative costs by $300 M Benjamin accepts the offer is profits will Select one a. Increase by $30,000 b. Increase by $6,000 c Decrease by 56,000 d. Increase by $5,200 e. Increase by $4,300
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