Benjamin Company had the following results of operations for the past year: $ 157,600 Sales...
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Benjamin Company had the following results of operations for the past year: $ 157,600 Sales (16,000 units at $9.85) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $93,600 13,600 31,700 (138,900) $ 18,700 A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,700 units at $7.17 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $570 and selling and administrative costs by $270. Assuming Benjamin has excess capacity and accepts the offer, its profits will: Multiple Choice Increase by $4,884. Decease by $4,884. Increase by $26,529. Increase by $4,255. Increase by $3,415
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