Benjamin co Sales (16000 units ar 10 160,000 Direct materials and direct labor 96000 Overhead...
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Accounting
Benjamin co
Sales (16000 units ar 10 160,000
Direct materials and direct labor 96000
Overhead (20% variable) 16000
Selling and Adm Exp 32000
Operating income 16000
A foreign company offers fo buy 4000 units at 7.50 per unit. In addition to variable mfg. cost, selling these units would increade fixed overhead by 600 and selling and adm cost by 300. Assuming Benjamin has excess capacity and accepts the offer, its profits will:
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