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Markson Company had the following results of operations for the past year: Contribution margin income statement Per Unit Annual Total Sales (10,600 ). $20.00 $212.000

Markson Company had the following results of operations for the past year:

Contribution margin income statement Per Unit Annual Total

Sales (10,600 ). $20.00 $212.000

Variable costs

Direct Materials 4.25 45,050

Direct Labor 6.00 63,600

Overhead 2.00 21,200

Contribution Margin 7.75 82,150

Fixed Costs

Fixed Overhead 4.25 45,050

Income $3.50 $37,100

A foreign company offers to buy 3,000 units at $14 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $2,640 for the purchase of special tools. Madisons annual productive capacity is 15,900 units. If Markson accepts this additional business, its profits will:

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