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Markson Company had the following results of operations for the past year: $ 156,000 Sales (8,000 units at $19.50) Variable manufacturing costs Fixed manufacturing costs
Markson Company had the following results of operations for the past year: $ 156,000 Sales (8,000 units at $19.50) Variable manufacturing costs Fixed manufacturing costs Variable administrative expenses Fixed selling and administrative expenses Operating income $ 84,000 14,500 10,000 19,500 (128,000) $ 28,000 A foreign company offers to buy 2,000 units at $13.25 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1,550 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will: Decrease by $1,550. Increase by $3,000. To o o o o Decrease by $5,500. Decrease by $4,550. Increase by $1,450
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