Omark Corporation currently manufactures a subassembly for its main product.The variable costs per unit are $48, in addition to a $6 charge based on estimated selling expenses.R-Corp has contacted Omark with an offer to sell them 5,000 of the subassemblies for $44.00 each.Omark will eliminate $50,000 of fixed overhead if it accepts the proposal.What is increase or decrease in profit from accepting the offer?
A)$50,000 increase
B)$100,000 increase
C)$170,000 increase
D)$50,000 decrease
E)$70,000 increase

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The Answer of Omark Corporation currently manufactures a subassembly for its main product.The variable costs per unit are $48, in addition to a $6 charge based on estimated selling expenses.R-Corp has contacted Omark with an offer to sell them 5,000 of the subassemblies for $44.00 each.Omark will eliminate $50,000 of fixed overhead if it accepts the proposal.What is increase or decrease in profit from accepting the offer?
A)$50,000 increase
B)$100,000 increase
C)$170,000 increase
D)$50,000 decrease
E)$70,000 increase

Omark Corporation Currently Manufactures a Subassembly for Its Main Product