During the year, X Company produced and sold 64,600 units of one of its products....
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Accounting
During the year, X Company produced and sold 64,600 units of one of its products. The following is the related revenue and cost information:
Revenue
$1,227,400
Cost of goods sold
555,560
Selling and administrative costs
270,028
Profit
$401,812
Total variable cost of goods sold were $436,696, and total variable selling and administrative costs were $183,464.
At the end of the year, a company offered to buy 4,230 units but was only willing to pay $12.00 each.
4. If X Company had accepted the special order, firm profits would have increased by
A: $7,951
B: $8,984
C: $10,152
D: $11,472
E: $12,963
F: $14,648
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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 $0.47. 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: $12,436
B: $15,545
C: $19,432
D: $24,290
E: $30,362
F: $37,952
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