During the year, X Company produced and sold 67,300 units of one of its products....
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Accounting
During the year, X Company produced and sold 67,300 units of one of its products. The following is the related revenue and cost information:
Revenue
$1,211,400
Cost of goods sold
561,955
Selling and administrative costs
302,177
Profit
$347,268
Total variable cost of goods sold were $424,663, and total variable selling and administrative costs were $203,246.
At the end of the year, a company offered to buy 4,190 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: $5,321
B: $7,715
C: $11,187
D: $16,222
E: $23,521
F: $34,106
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 $0.50. 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: $13,783
B: $17,229
C: $21,536
D: $26,920
E: $33,650
F: $42,062
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