Benjamin Company had the following results of operations for the past year: $ 332,500 Sales (17,500 units at $19) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $ 140,000 17,500 22,750 (180,250) $ 152, 250 A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,375 units at $15.20 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $750 and selling and administrative costs by $860. Assuming Benjamin's productive capacity is 17,500 units per year and accepts the offer, its profits will: Benjamin Company had the following results of operations for the past year: $ 166,400 Sales (16,000 units at $10.40) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $102,400 22,400 32,800 (157,600) 8,800 $ A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,800 units at $8.38 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $680 and selling and administrative costs by $380. Assuming Benjamin has excess capacity and accepts the offer, its profits will: The following present value factors are provided for use in this problem. Periods 1 Present Value of $1 at 8% 0.9259 0.8573 0.7938 0.7350 Present Value of an Annuity of $1 at 8% 0.9259 1.7833 2.5771 3.3121 2 3 4 Xavier Co. wants to purchase a machine for $38,000 with a four year life and a $1,100 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $13,000 in each of the four years. What is the machine's net present value