Benjamin Company Had the Following Results of Operations for the Past

question 131

Multiple Choice

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.

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Definitions:

International Purchasing Offices

Entities established by companies in foreign countries to facilitate the sourcing and procurement of goods and services.

Geographic Region

An area defined by natural or artificial features that distinguish it from other areas, which can affect market strategies and operations.

Established Presence

A term indicating that a company or brand has a recognized and sustained position within a market or industry.

Countertrade

A method of trade where goods and services are exchanged for other goods and services instead of for money, often used in international transactions.