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Benjamin Company had the following results of operations for the past year: $ 156,000 Sales (16,000 units at $9.75) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $92,000 12,000 31,500 (135,500) 20,500 $ A forelgn company (whose sales will not affect Benjamin's market) offers to buy 3,500 units at $6.95 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $550 and selling and administrative costs by $250. Assuming Benjamin has excess capacity and accepts the offer. Its profits will: Multiple Choice o ) Increase by $24.325. Increase by $4.200. o Increase by $3.675. o Decease by $4,200. o Increase by $2,875. JK Company can sell all of the plush and supreme products it can produce, but it has limited production capacity. It can produce 4 plush units per hour or 2 supreme units per hour, and it has 2,200 production hours available. Contribution margin per unit is $216 for the plush product and $302 for the supreme product. What is the total contribution margin If JK chooses the most profitable sales mix? $915,200. $2,285,000. jo 0 0 0 0 $1,830,400. $2,657.600 Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following Information: Labor rate, including fringe benefits Annual labor hours Annual materials purchases Materials purchasing, handling, and storage Overhead for depreciation, taxes, insurance, etc. Target profit margin for both labor and materials $ 114 per hour 6,480 hours $1,274,500 $ 254,900 $ 764,640 25 % What is the total price for a project requiring 290 direct labor hours and $280,000 of materials? Multiple Choice 357.800 $407.000 lo o o o o $492,600 $482.600. $490,100 Sooky has a spotter truck with a book value of $48,000 and a remaining useful life of 5 years. At the end of the five years the spotter truck will have a zero salvage value. The market value of the spotter truck is currently $36,000. Sooky can purchase a new spotter truck for $128,000 and receive $31.800 in return for trading in its old spotter truck. The new spotter truck will reduce variable manufacturing costs by $26,700 per year over the five-year life of the new spotter truck. The costs not relevant to the decision of whether or not to replace the spotter truck are: Multiple Choice O $31.800 $26,700. O $133.500. O $128.000 $48.000