Question

A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,000 units at $6.40 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $500 and selling and administrative costs by $200. If Benjamin accepts the offer, its profits will:

Answer 1

Increase by $18,500

Step-by-step explanation:

Data and Calculation

Sales $19,200

Less Expenses $700

Net Income $18,500

If Benjamin accepts the offer, its profits will: increase by $18,500