During the year, X Company produced and sold 68,500 units of one of its products....
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Accounting
During the year, X Company produced and sold 68,500 units of one of its products. The following is the related revenue and cost information:
Revenue
$1,164,500
Cost of goods sold
541,150
Selling and administrative costs
261,670
Profit
$361,680
Total variable cost of goods sold were $415,110, and total variable selling and administrative costs were $175,360.
At the end of the year, a company offered to buy 4,970 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: $11,829
B: $13,366
C: $15,104
D: $17,067
E: $19,286
F: $21,793
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 $0.38. 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
