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 $19.30) $ 154,400 Variable manufacturing costs $ 83,200 Fixed manufacturing costs 14,300 Variable selling and administrative expenses 9,200 Fixed selling and administrative expenses 19,300 (126,000 ) Operating income $ 28,400
A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $12.95 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,530 for the purchase of special tools. Marksons annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will:
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