Benjamin Company had the following results of operations for the past year: A foreign company 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 it accepts the offer, its profits will:
A) Decrease by $10,000.
B) Decrease by $10,900.
C) Decrease by $6,000.
D) Increase by $9,100.
E) Increase by $4,300.

Question

Benjamin Company had the following results of operations for the past year:  A foreign company 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 it accepts the offer, its profits will:
A) Decrease by $10,000. 
B) Decrease by $10,900. 
C) Decrease by $6,000. 
D) Increase by $9,100. 
E) Increase by $4,300.

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Benjamin Company Had the Following Results of Operations for the Past