Benjamin Company had the following results of operations for the past year $180,000 Sales (12,000...
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Benjamin Company had the following results of operations for the past year $180,000 Sales (12,000 units at $15) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $60,000 12,000 15,600 (87,600) $ 92,400 A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,000 units at $12.00 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $950 and selling and administrative costs by $700. Assuming Benjamin's productive capacity is 12,000 units per year and accepts the offer, its profits will
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