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Benjamin Company had the following results of operations for the past year Sales (17,100 units at $14) Direct materials and direct labor Overhead (20% variable)
Benjamin Company had the following results of operations for the past year Sales (17,100 units at $14) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $ 239,000 $136,800 17,100 27,360 (181,260) $ 58,140 A foreign company (whose sales will not affect Benjamin's market offers to buy 4 275 units at $11.20 per unit. In addition to variable manufacturing costs, selling these units would increase foed overhead by 5770 and selling and administrative costs by S440 Assuming Benjamin's productive capacity is 17800 units per year and accepts the offer its profits will Multiple Choice Decrease by 56170 Decrease by 19 O Decrease by $13.100 Increase by $10.760
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