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Last year, X Company sold 61,200 units of its only product for $17.00 each. Total costs were as follows:

Cost of goods sold
Variable	$359,244
Fixed	133,416
Selling and administrative
Variable	$80,172
Fixed	82,620

At the end of the year, a company offered to buy 4,320 units of the product for $11.00 each instead of $17.00. X Company's production manager thought that the special order units would probably require additional variable costs per unit of $1.00 and the rental of special equipment for $1,000. X Company had the capacity to produce the additional units, and there would have been no selling and administrative costs for the special order. But X Company still rejected the order. 5. If X Company had accepted the special order, firm profits would have increased by

A: $7,682

B: $8,988

C: $10,515

D: $12,303

E: $14,395

F: $16,842

Tries 0/99

6. There was concern that regular customers would have found out about the special order, and X Company's regular sales this year would have fallen by 800 units. The result of these lost sales would have been to reduce X Company's profits this year by

A: $2,574

B: $3,218

C: $4,022

D: $5,028

E: $6,285

F: $7,856

Please answer both correctly to get thumbs up.

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