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.If Benjamin accepts the offer,its profits will:
A)Increase by $30,000.
B)Increase by $6,000.
C)Decrease by $6,000.
D)Increase by $5,200.
E)Increase by $4,300.

Question

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.If Benjamin accepts the offer,its profits will:
A)Increase by $30,000. 
B)Increase by $6,000. 
C)Decrease by $6,000. 
D)Increase by $5,200. 
E)Increase by $4,300.

Quizplus · Accepted Answer

The Answer of 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.If Benjamin accepts the offer,its profits will:
A)Increase by $30,000. 
B)Increase by $6,000. 
C)Decrease by $6,000. 
D)Increase by $5,200. 
E)Increase by $4,300.

Benjamin Company Had the Following Results of Operations for the Past