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TB MC Qu. 23-71 (Algo) Benjamin Company had the following results... Benjamin Company had the following results of operations for the past year: Sales (22,400 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income $ 224,000. 44,800 89,600 4,480 85, 120 17,920 44,800 $ 22,400 A foreign company (whose sales will not affect Benjamin's market) offers to buy 5,600 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $840 and fixed selling and administrative costs by $420. Assuming Benjamin has excess capacity and accepts the offer, its profits will:

TB MC Qu. 23-71 (Algo) Benjamin Company had the following results... Benjamin Company had the foliowing results of operations for the past year: A foreign compeny (whose sales will not affect Benjamin's market) offers to buy 5,600 units at $7.50 per unit, In addition to variabie costs, fefling these units would increase fixed overhead by $840 and fixed selling and administrative costs by $420. Assuming Benjamin has excess capacity and accepts the offer, its profits wile Multiple Choice Increase by $42,000. Increase by $8,400. Decrease by $8,400. Increase by $7,280. Increase by $6,020

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