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Benjamin Company had the following results of operations for the past year: $ 153,600 Sales (16,000 units at $9.60) Direct materials and direct labor Overhead

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Benjamin Company had the following results of operations for the past year: $ 153,600 Sales (16,000 units at $9.60) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $89,600 9,600 31,200 (130,400) $ 23,200 A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,200 units at $6.62 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $520 and selling and administrative costs by $220. Assuming Benjamin has excess capacity and accepts the offer, its profits will: Multiple Choice Increase by $2,140. Increase by $3,264. Decease by $3,264. Increase by $2,880. Increase by $21,184

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