Benjamin Company had the following results of operations for the past year: $ 214,700 Sales...
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Accounting
Benjamin Company had the following results of operations for the past year: $ 214,700 Sales (11,300 units at $19) Direct materials and direct labor Overhead (208 variable) Selling and administrative expenses (all fixed) Operating income $56,500 11,300 13,560 (81,360) $133, 340 A foreign company (whose sales will not affect Benjamin's market) offers to buy 2,825 units at $15.20 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $960 and selling and administrative costs by $780. Assuming Benjamin's productive capacity is 11,300 units per year and accepts the offer, its profits will: Multiple Choice O Decrease by $10,735. Decrease by $12,475
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