Markson Company had the following results of operations for the past year: Sales (8,000 units at $20.80) $ 166,400 Variable manufacturing costs $ 89,200 Fixed manufacturing costs 15,800 Variable selling and administrative expenses 15,200 Fixed selling and administrative expenses 20,800 (141,000 ) Operating income $ 25,400 A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $15.20 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,680 for the purchase of special tools. Markson’s annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will:
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Markson Company had the following results of operations for the past year: Sales (8,000 units at $20...
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