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Markson Company had the following results of operations for the past year: $ 166,400 Sales (8,000 units at $20.80) Variable manufacturing costs Fixed manufacturing costs
Markson Company had the following results of operations for the past year: $ 166,400 Sales (8,000 units at $20.80) Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Operating income $89,200 15,800 15,200 20,800 (141,000) $ 25,400 A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $15.20 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,680 for 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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