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Markson Company had the following results of operations for the past year, $ 167,200 Sales (8,000 units at $20.90) Variable manufacturing costs Fixed manufacturing costs
Markson Company had the following results of operations for the past year, $ 167,200 Sales (8,000 units at $20.90) Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Operating income $89,600 15,900 15,600 20, 900 (142,000) $ 25, 200 A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $15.35 per unit. In addition to variable manufacturing costs, selling these units would increase foxed overhead by $1.690 fc the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will
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