Benjamin Company Had the Following Results of Operations for the Past

question 71

Multiple Choice

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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Definitions:

Homozygous

A genetic condition where an individual has two identical alleles for a specific gene.

Heterozygous

Possessing two different alleles of a particular gene, one inherited from each parent, resulting in genetic variation.

Alleles

Different versions of a gene, which can result in variations in the physical or physiological traits of an organism.

Genomic Imprinting

An epigenetic phenomenon where certain genes are expressed in a parent-of-origin-specific manner, meaning that the expression of the gene is different depending on whether it is inherited from the mother or the father.