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Business, 06.08.2021 18:30 bellam302

Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $9.95) $159,200
Direct materials and direct labor $95,200
Overhead (20% variable) 15,200
Selling and administrative expenses (all fixed) 31,900 (142,300)
Operating income $16,900
A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,900 units at $7.39 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $590 and selling and administrative costs by $290. Assuming Benjamin has excess capacity and accepts the offer, its profits will:.

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Benjamin Company had the following results of operations for the past year: Sales (16,000 units at...

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