The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full...
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The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full capacity. The Benton Company has approached Arthur with an offer to buy 23,000 utensils at $0.80 each. Arthur sells its utensils wholesale for $0.90 each; the average cost per unit is $0.87, of which $0.12 is fixed costs. If Arthur were to accept Benton's offer, what would be the increase in Arthur's operating profits?
Multiple Choice
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$690.
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$1,610.
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$1,150.
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$2,300.
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