99.

During the year, X Company produced and sold 69,800 units of one of its products. The following is the related revenue and cost information:

Revenue			$1,326,200
Cost of goods sold			607,260
Selling and administrative costs			260,354
Profit			$458,586

Total variable cost of goods sold were $459,284, and total variable selling and administrative costs were $174,500.

At the end of the year, a company offered to buy 5,000 units but was only willing to pay $11.00 each.

A. If X Company had accepted the special order, firm profits would have increased by

A: $3,146

B: $3,932

C: $4,915

D: $6,144

E: $7,680

F: $9,600

B. 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 $0.43. 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: $23,505

B: $26,561

C: $30,014

D: $33,916

E: $38,325

F: $43,307

In case you need:

TTable 1: Present Value of $1.00 Table 2: Present Value of an Annuity of $1.00