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TB MC Qu. 10-74 (Algo) Markson Company had the following results... Markson Company had the following results of operations for the past year: Contribution

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TB MC Qu. 10-74 (Algo) Markson Company had the following results... Markson Company had the following results of operations for the past year: Contribution margin income statement Sales (10,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Income Per Unit $ 20.00 Annual Total $ 200,000 4.25 42,500 6.00 60,000 2.00 20,000 7.75 77,500 4.25 $ 3.50 42,500 $ 35,000 A foreign company offers to buy 3,000 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $2.400 for the purchase of special tools. Markson's annual productive capacity is 15,000 units. If Markson accepts this additional business, its profits will Multiple Choice Increase by $5,250 Decresse by $9,150 Decreme by $2.400)

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