Benjamin Company Had The Following Results Of Operations For The Past Year Sales 16 000 Units At 9 70 Direct Materia 1 (21.59 KiB) Viewed 9 times
Benjamin Company Had The Following Results Of Operations For The Past Year Sales 16 000 Units At 9 70 Direct Materia 2 (13.64 KiB) Viewed 9 times
Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $9.70) Direct materials and direct labor Overhead (20 variable) Selling and administrative expenses (all fixed) Operating income Multiple Choice A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,400 units at $6.84 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $540 and selling and administrative costs by $240, Assuming Benjamin has excess capacity and accepts the offer, its profits will: O Increase by $3,876. Increase by $3,400 $ 155,200 Increase by $2,620 $91,200 11,200 31,400 (133,800) $21,400
Multiple Choice Increase by $3.876 increase by $3,400 Increase by $2,620 Increase by $23.256. Decease by $3.876
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