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Markson Company had the following results of operations for the past yeor $164,000 Sales (8,000 units at $20.50) Variable manufacturing costs Fixed manufacturing costs Variable
Markson Company had the following results of operations for the past yeor $164,000 Sales (8,000 units at $20.50) Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Operating income $88,000 15.500 14.000 20,500 138000) $26,000 A foreign company whose sales will not affect Markson's market offers to buy 2,.000 units at S14.75 per unit In addition to varlable manufacturing costs, selling these units would increase fixed overhead by $1.650 for the purchase of special tools. If Markson accepts this additional business, its profits will Decrease by $5.650. O Decrease by $5.000. O Decrease by $1.650. O Increese by $4 000 O Increase by $2.350
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