Markson Company had the following results of operations for the past year: Sales (8,000 units at $20.60) $ 164,800 Variable manufacturing costs...
this is for practice please help the test is coming up and i need to understand how to problem
Markson Company had the following results of operations for the past year: Sales (8,000 units at $20.60) $ 164,800Variable manufacturing costs $88,400Fixed manufacturing costs 15,600Variable selling and administrative expenses 14,400Fixed selling and administrative expenses 20,600 (139,000)Operating income $ 25,800 A foreign company whose sales will not affect Marksonās market offers to buy 2,000 units at $14.90 per unit. In addition to variable manufacturing costs,selling these units would increase fixed overhead by $1,660 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. IfMarkson accepts this additional business, its profits will:
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