During the year, X Company produced and sold 60,200 units of one of its products....
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Accounting
During the year, X Company produced and sold 60,200 units of one of its products. The following is the related revenue and cost information:
Revenue
$1,143,800
Cost of goods sold
549,024
Selling and administrative costs
221,536
Profit
$373,240
Total variable cost of goods sold were $411,768, and total variable selling and administrative costs were $158,928.
At the end of the year, a company offered to buy 4,440 units but was only willing to pay $11.00 each.
If X Company had accepted the special order, firm profits would have increased by
A: $4,654
B: $6,749
C: $9,786
D: $14,189
E: $20,575
F: $29,833
Tries 0/99
There is concern that regular customers will find out about the special order, and in order to retain all of the X Company's regular customers, the regular selling price would have to be reduced by $0.59. If the selling price were reduced and next year's unit sales turn out to be the same as this year's sales, firm profits would fall by
A: $16,200
B: $18,954
C: $22,176
D: $25,946
E: $30,357
F: $35,518
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