Markson Company had the following results of operations for the past year: Sales (8,000 units...
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Markson Company had the following results of operations for the past year: Sales (8,000 units at $19.90) Variable manufacturing costs Pixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Operating income 159,200 $85,600 14,900 11,600 19,900 _(132,000) 27,200 A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $13.85 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,590 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will Multiple Choice Decrease by $1,590 Increase by $3,400 Decrease by $5,300. Decrease by $4,990. Increase by $1810
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