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Markson Company had the following results of operations for the past year: Contribution margin income statement Sales (11,200 units) Variable costs Direct materials Direct
Markson Company had the following results of operations for the past year: Contribution margin income statement Sales (11,200 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Income Per Unit Annual Total $ 20.00 $224,000 4.25 47,600 6.00 67,200 2.00 22,400 7.75 86,000 4.25 $ 3.50 47,600 $39,200 A foreign company offers to buy 3,600 units at $14 per unit in addition to variable manufacturing and administrative costs, selling these unts would increase fixed overhead by $2,880 for the purchase of special tools. Markson's annual productive capacity is 16,800 units. If Markson accepts this additional business, its profits wer
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