The following information is for Questions 4 and 5 . During the year, X Company...
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The following information is for Questions 4 and 5 . During the year, X Company sold 69,500 units of one of its products for $19.00 each. The following cost functions are for these regular production and sales levels: Cost of goods sold: $6.03X + $150,815 Selling and administrative expenses: $3.05X + $99,385 Variable selling and administrative expenses include sales commissions equal to 4% of sales. At the end of the year, a company offered to buy 4,400 units but was only willing to pay $11.00 each. X Company had the capacity to produce the 4,400 units. 4. If X Company had accepted the special order, firm profits would have increased by Tries 0/3 5. Now assume that there would not have been sales commissions for the special order. If X Company had accepted the special order, firm profits would have increased by Tries 0/3
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