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:

Autonomy and Entrepreneurship

This refers to the capacity of individuals or teams to make independent decisions and pursue innovative ventures within the constraints of an organization.

Closeness of Supervision

The degree to which managerial oversight and control are applied in the oversight of employee tasks and responsibilities.

Productivity Through People

A management philosophy emphasizing the empowerment and involvement of employees in decision-making processes to improve performance and productivity.

Contingency Thinking

Contingency thinking is an approach that considers the possible variations in a situation and plans for multiple potential scenarios, acknowledging that there is no one-size-fits-all strategy.