Benjamin Company had the following results of operations for the past year: Sales (24,000 units at $10.00) Variable costs Direct materiale Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income $ 240,000 48,000 96,000 4,900 91,200 19,200 48,000 $24,000 A foreign company (whose sales will not affect Benjamin's market) offers to buy 6,000 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $900 and fixed selling and administrative costs by $450. Assuming Benjamin has excess capacity and accepts the offer, its profits will
Benjamin Company had the following results of operations for the past year: Sales (24,000 units at $10.00) Variable costs Direct materiale Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income $ 240,000 48,000 96,000 4,900 91,200 19,200 48,000 $24,000 A foreign company (whose sales will not affect Benjamin's market) offers to buy 6,000 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $900 and fixed selling and administrative costs by $450. Assuming Benjamin has excess capacity and accepts the offer, its profits will
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Benjamin Company had the following results of operations for the past year.
Sales (24,000 units at $10.00)
Variable costs
Direct materials
Direct labor
Overhead
Contribution margin
Fixed costs
Fixed overhead
Fixed selling and administrative expenses
Income
$ 240,000
48,000
96,000
4,000
91,200
19,200
48,000
$ 24,000
A foreign company (whose sales will not affect Benjamin's market) offers to buy 6,000 units at $7.50 per unit. In addition to variable costs, selling these
units would increase fixed overhead by $900 and fixed selling and administrative costs by $450. Assuming Benjamin has excess capacity and accepts
the offer, its profits will
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