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Markson Company had the following results of operations for the past year Sales (8,000 units at $20.90) Variable manufacturing costs Fixed manufacturing costs Variable selling

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Markson Company had the following results of operations for the past year Sales (8,000 units at $20.90) Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses 167,200 $89,600 15,900 15,600 20,900 (142,000) 25,200 Operating income 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 fixed overhead by $1,690 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will: Increase by $4,400. Decrease by $4,800 Decrease by $6,090 Increase by $2,710 Decrease by $1,690

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