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Benjamin Company had the following results of operations for the past year: Sales (24,800 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income $ 248,000 $ 49,600 99,200 4,960 94,240 19,840 49,600 24,800 A foreign company (whose sales will not affect Benjamin's market) offers to buy 6,200 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $930 and fixed selling and administrative costs by $465. 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 (24,800 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income $ 248,000 $ 49,600 99,200 4,960 94,240 19,840 49,600 24,800 A foreign company (whose sales will not affect Benjamin's market) offers to buy 6,200 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $930 and fixed selling and administrative costs by $465. Assuming Benjamin has excess capacity and accepts the offer, its profits will:

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
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Benjamin Company had the following results of operations for the past year: Sales (24,800 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin. Fixed costs Fixed overhead Fixed selling and administrative expenses Income Multiple Choice Increase by $46,500 $ 248,000 A foreign company (whose sales will not affect Benjamin's market) offers to buy 6,200 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $930 and fixed selling and administrative costs by $465. Assuming Benjamin has excess capacity and accepts the offer, its profits will: Increase by $9,300 49,600 99,200 4,960 94,240 19,840 49,600 $ 24,800
Transcribed Image Text:Benjamin Company had the following results of operations for the past year: Sales (24,800 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin. Fixed costs Fixed overhead Fixed selling and administrative expenses Income Multiple Choice Increase by $46,500 $ 248,000 A foreign company (whose sales will not affect Benjamin's market) offers to buy 6,200 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $930 and fixed selling and administrative costs by $465. Assuming Benjamin has excess capacity and accepts the offer, its profits will: Increase by $9,300 49,600 99,200 4,960 94,240 19,840 49,600 $ 24,800
A foreign company (whose sales will not affect Benjamin's market) offers to buy 6,200 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $930 and fixed selling and administrative costs by $465. Assuming Benjamin has excess capacity and accepts the offer, its profits will: Multiple Choice Increase by $46,500. Increase by $9,300 Decrease by $9,300. Increase by $8,060. Increase by $6,665.
Transcribed Image Text:A foreign company (whose sales will not affect Benjamin's market) offers to buy 6,200 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $930 and fixed selling and administrative costs by $465. Assuming Benjamin has excess capacity and accepts the offer, its profits will: Multiple Choice Increase by $46,500. Increase by $9,300 Decrease by $9,300. Increase by $8,060. Increase by $6,665.
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