Sales (16,000 units at $9.70) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (a11 fixed) Operating income $ 155,200 91,200 11,200 31,400 (133,800) $ 21,400 A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,400 units at $6.84 per unit. In addition to variable manufacturing costs selling these units would increase fixed overhead by $540 and selling and administrative costs by $240. Assuming Benjamin has excess copacity and accepts the offer, its profits will Multiple Choice Increase by $2.620 increase by $3,876 Decease by $3.876 Increase by $3,400