During the year, X Company produced and sold 60,800 units of one of...
50.1K
Verified Solution
Link Copied!
Question
Accounting
During the year, X Company produced and sold 60,800 units of one of its products. The following is the related revenue and cost information:
Revenue
$1,155,200
Cost of goods sold
486,400
Selling and administrative costs
276,640
Profit
$392,160
Total variable cost of goods sold were $369,056, and total variable selling and administrative costs were $198,208.
At the end of the year, a company offered to buy 4,270 units but was only willing to pay $11.00 each.
4. If X Company had accepted the special order, firm profits would have increased by
A: $7,131
B: $8,914
C: $11,142
D: $13,928
E: $17,409
F: $21,762
Tries 0/99
5. 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 $0.54. 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: $7,889
B: $10,493
C: $13,955
D: $18,561
E: $24,686
F: $32,832
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
