Benjamin Company Had the Following Results of Operations for the Past

question 7

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. Assuming Benjamin has excess capacity and 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:

Registered Democrats

Registered Democrats are individuals who have officially registered to vote as members of the Democratic Party in the United States.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, important in inferential statistics for making inferences about a population.

Population Variances

A measure of the dispersion or spread of the entirety of data points in a population.

Student-t

A distribution that looks similar to the normal distribution but has thicker tails, used especially in scenarios of small sample sizes.