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Cornish Company Had the Following Results of Operations for the Past

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Cornish Company had the following results of operations for the past year: Cornish Company had the following results of operations for the past year:   A foreign company (whose sales will not affect Cornish's market) offers to buy 3,000 units at $17.00 per unit.In addition to variable manufacturing costs,selling these units would increase fixed overhead by $500 and selling and administrative costs by $1,000.If Cornish accepts the offer,its profits will: A) Decrease by $4,500. B) Increase by $4,500. C) Decrease by $300. D) Increase by $13,500. E) Increase by $15,000. A foreign company (whose sales will not affect Cornish's market) offers to buy 3,000 units at $17.00 per unit.In addition to variable manufacturing costs,selling these units would increase fixed overhead by $500 and selling and administrative costs by $1,000.If Cornish accepts the offer,its profits will:

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Definitions:

U.S. Consumers

Individuals or households in the United States that purchase goods and services for personal use.

Domestic Consumers

Households or persons in a country acquiring goods and services for individual use.

Domestic Producers

Businesses or individuals within a country that produce goods or services.

Exports

Goods and services sold by a country to other countries.

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