Company X had the following operating results for the past year: $ Sales (8,000 units at $10) 80,000 Variable Manufacturing Costs $ 48,000 Fixed Overhead 8,000 Selling and Administrative Expenses 16,000 72,000 Operating Income 8,000 A foreign company (whose sales will not affect X's existing market) offers to buy 2,000 units at $7.50 each. In addition to variable manufacturing costs, selling these units would increase overhead by $300 and selling and administrative expenses by $800. If X accepts the offer, its profits will: A. Increase by $1,900, B. Increase by $2,200 Increase by $3,000 Increase by $13,900. E. Increase by $15,000. Madson's is analyzing two projects for the future. Assume that only one project can be selected. C. D Project X Project Y Cost of Machine $ 30,000 $ 30,000 Net Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 12,000 12,000 12,000 0 0 2,000 13,000 13,000 10,000 0 If the company is using the payback period method and requires payback within three years or less, which project should be selected? (Ignore taxes.) A Project X B. Project Y C. Either Project X or Y is acceptable D. Neither Project X nor Y is acceptable E Cannot be determined