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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
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 (11,800 units) $ 20.00 $ 236,000 Variable costs Direct materials 4.25 50,150 Direct labor 6.00 70,800 Overhead 2.00 23,600 Contribution margin 7.75 91,450 Fixed costs Fixed overhead 4.25 50,150 Income $ 3.50 $ 41,300 A foreign company offers to buy 3,900 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $3,120 for the purchase of special tools. Marksons annual productive capacity is 17,700 units. If Markson accepts this additional business, its profits will: Multiple Choice Decrease by $12,300. Increase by $6,825. Decrease by $3,120. Increase by $3,705. Decrease by $9,945
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