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Markson Company had the following results of operations for the past year: Contribution margin income statement Sales (8,000 units) Variable costs Per Unit $ 20.00
Markson Company had the following results of operations for the past year: Contribution margin income statement Sales (8,000 units) Variable costs Per Unit $ 20.00 Annual Total $ 160,000 Direct materials Direct labor Overhead Contribution margin Fixed costs 4.25 6.00 2.00 7.75 34,000 48,000 16,000 62,000 Fixed overhead Income 4.25 $ 3.50 34,000 $ 28,000 A foreign company offers to buy 2,000 units at $14 per unit. In addition to variable manufacturingand administrative costs, selling these units would increase fixed overhead by $1,600 for the purchase of Fixed overhead Income 4.25 $ 3.50 34,000 $ 28,000 A foreign company offers to buy 2,000 units at $14 per unit. In addition to variable manufacturingand administrative costs, selling these units would increase fixed overhead by $1,600 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will: O Increase by $3,500. O Decrease by $5,650. Decrease by $1,600. Increase by $1.900. O Decrease by S5,100
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