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Markson Company had the following results of operations for the past year: Per Unit $ 20.00 Contribution margin income statement Sales (11,200 units) Variable costs
Markson Company had the following results of operations for the past year: Per Unit $ 20.00 Contribution margin income statement Sales (11,200 units) Variable costs Direct materials Direct labor Overhead Contribution margin. Fixed costs Fixed overhead Income 4.25 6.00 2.00 7.75 4.25 $ 3.50 Annual Total $ 224,000 47,600 67,200 22,400 86,800 47,600 $ 39,200 A foreign company offers to buy 3,600 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $2,880 for the purchase of special tools. Markson's annual productive capacity is 16,800 units. If Markson accepts this additional business, its profits will:
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