Solution-What would be the increase in Arthur operating

What would be the increase in Arthur operating profits

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Question - 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 20,000 utensils at $0.75 each. Arthur sells its utensils wholesale for $0.85 each; the average cost per unit is $0.83, of which $0.12 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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What would be the increase in Arthur operating profits

Reference no: EM133127683

Reference no: EM133127683

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