Multiple Choice
Benjamin Company had the following results of operations for the past year:
A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,000 units at $7.50 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $600 and selling and administrative costs by $300.
- Assuming Benjamin's productive capacity is 16,000 units per year and accepts the offer, its profits will:
A) Decrease by $10,000.
B) Decrease by $ 6,000.
C) Decrease by $10,900.
D) Increase by $ 9,100.
E) Increase by $ 4,300.
Correct Answer:

Verified
Correct Answer:
Verified
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