The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full capacity. The Benton Company has approached Arthur with an offer to buy 24,000 utensils at $0.85 each. Arthur sells its utensils wholesale for $0.95 each; the average cost per unit is $0.91, of which $0.13 is fixed costs. If Arthur were to accept Benton's offer, what would be the increase in Arthur's operating profits?

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The average cost per unit is 091 Less Fixed Cost per unit 013 Variable Cost per Unit 078 ... View the full answer