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Markson Company had the following results of operations for the past year. Contribution margin income statement Sales (9,800 units) Variable costs Direct materials Direct
Markson Company had the following results of operations for the past year. Contribution margin income statement Sales (9,800 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Income Per Unit $ 20.00 Annual Total $ 196,000 4.25 41,650 6.00 58,800 2.00 19,600 7.75 75,958 4.25 $ 3.50 41,650 $ 34,300 A foreign company offers to buy 2.900 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $2,320 for the purchase of special tools. Markson's annual productive capacity is 14,700 units. If Markson accepts this additional business, its profits will: Muhiele Choice In by $5,075 Derby $8,800. Decrease by $2,320. In by $2,755. Decrease by $7,305.
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