Benjamin Company Had the Following Results of Operations for the Past

question 33

Multiple Choice

Benjamin Company had the following results of operations for the past year: $\begin{array}{llr} \text { Sales }(16,000 \text { units at } \$ 10) &&\$160,000\\ \text { Direct materials and direct labor } &\$96,000\\ \text { Overhead ( \( 20 \% \) variable) } &16,000\\ \text { Selling and administrative expenses (all fixed) } &32,000&(144,000) \\ \text {Operating income } &&\$16,000\\\end{array}$
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.
- Assuming Benjamin's productive capacity is 16,000 units per year and accepts the offer, its profits will:

• A) Decrease by $10,000.
• B) Decrease by $ 6,000.
• C) Decrease by $10,900.
• D) Increase by $ 9,100.
• E) Increase by $ 4,300.

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Definitions:

Social Comparison

The process of evaluating oneself in relation to others, often in terms of abilities, achievements, or social status.

Prosocial Behavior

Actions intended to benefit others, including kindness, sharing, and helping behaviors.

Relational Aggression

A type of aggression that harms others through deliberate manipulation or damage to their relationships or social standing.

Self-Description

The way in which one articulates or portrays their own attributes, traits, and capabilities.