Benjamin Company had the following results of operations for the past year:Sales (30,400 units at $10.00)Variable costsDirect materialsDirect laborOverheadContribution marginFixed costsFixed overheadFixed selling and administrative expensesIncomeMultiple ChoiceIncrease by $57,000.A foreign company (whose sales will not affect Benjamin's market) offers to buy 7,600 units at $7.50 per unit. In additionto variable costs, selling these units would increase fixed overhead by $1,140 and fixed selling and administrative costsby $570. Assuming Benjamin has excess capacity and accepts the offer, its profits will:Increase by $11,400.Decrease by $11,400.Increase by $9,880.$ 304,000Increase by $8,170.60,800121,6006,080115,52024,32060,800$ 30,400

Lets understand the basics. Management need to choose whether to accept special order or not. It is…

Sales (30,400 units at $10.00) Variable costs Direct materials Direct labor alionis Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income the past year. $ 304,000 60,800 121,600 6,080 115,520 24,320 60,800 $ 30,400 A foreign company (whose sales will not affect Benjamin's market) offers to buy 7,600 units to variable costs, selling these units would increase fixed overhead by $1,140 and fixed selli

Sales (30,400 units at $10.00) Variable costs Direct materials Direct labor alionis Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income the past year. $ 304,000 60,800 121,600 6,080 115,520 24,320 60,800 $ 30,400 A foreign company (whose sales will not affect Benjamin's market) offers to buy 7,600 units to variable costs, selling these units would increase fixed overhead by $1,140 and fixed selli

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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