TB MC Qu. 23-74 (Algo) Markson Company had the following results... Markson Company had the following results of operations for the past year: Contribution margin income statement Per Unit Annual Total Sales (11, 400 units) $ 20.00 $ 228,000 Variable costs Direct materials 4.25 48, 450 Direct labor 6.00 68, 400 Overhead 2.00 22, 800 Contribution margin 7.75 38, 350 Fixed costs Fixed overhead 4.25 48, 450 Income $ 3.50 $ 39,900 A foreign company offers to buy 3,700 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $2,960 for the purchase of special tools. Markson's annual productive capacity is 17100 units. If Markson accepts this additional business, Its profits will: Multiple Choice O Increase by $6.475. O Decrease by $11.600. O Decrease by $2.960. O Increase by $3,515. O Decrease by $9,435.TB MC Qu. 23-70 (Algo) Graham Corporation has... Graham Corporation has 1,000 cartons of oranges that were harvested at a cost of $26,600. The oranges can be sold as Is for $30,320. The oranges can be processed further Into orange juice at an additional cost of $12,525 and be sold at a price of $46,350. The Incremental Income (loss) from processing the oranges Into orange juice would be: Multiple Choice O $16.030. O $(16,030). O $(3,505). O $3.505. O $33.825