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undefined Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10) $160,000 Direct materials and direct labor $80,000
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Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10) $160,000 Direct materials and direct labor $80,000 Overhead (20% variable) 32,000 Selling and administrative expenses (all fixed) 32,000 (144,000) Operating income $ 16,000 A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,000 units at $8.25 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $800 and selling and administrative costs by $600. Assuming Benjamin has excess capacity and accepts the offer, the incremental income will be DON'T USE COMMA SEPARATORSStep by Step Solution
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