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enjamin Company had the following results of operations for the past year: $134,400 Sales (11,200 units at $12) Direct materials and direct labor Overhead (20%
enjamin Company had the following results of operations for the past year: $134,400 Sales (11,200 units at $12) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $56,000 11, 200 14,560 So (81,760) $ 52,640 foreign company offers to buy 2,800 units at $9.60 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $920 and selling and administrative costs by $620. Assuming Benjamin's productive apacity is 11,200 units per year and it accepts the offer, its profits will: Multiple Choice Increase by $ 3,420. Decrease by $8,260. Decrease by $ 45,920. Decrease by $6,720. Increase by $ 5,180
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