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As of December 1, 2021, X Company had produced and sold 69,000 units of its only product. The following is the company's December 1 Income
As of December 1, 2021, X Company had produced and sold 69,000 units of its only product. The following is the company's December 1 Income Statement: Per-Unit Sales Cost of goods sold Gross profit Selling & administrative costs Profit Total $816,270 $11.83 558,900 8.10 257,370 3.73 138,000 2.00 $119,370 $1.73 Analysis of cost of goods sold reveals that $420,900 of it was variable; a similar analysis of selling & administrative costs reveals that $69,000 of it was fixed. On December 2, a company offered to buy 4,000 units for $10.45 each. Because the special order product was slightly different than the regular product, direct material costs were expected to decrease by $0.25 per unit, and some special equipment would have to be rented for a total of $17,000. 4. What would profit have been on the special order? OA: $-1,065 B: $-1,331 C: $-1,664 OD: $-2,080|| OE: $-2,600|| OF: $-3,250 Submit Answer Tries 0/99 5. If X Company had accepted the special order, it would have had to lower the selling price of its regular product to $11.25 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by A: $35,416 OB: $40,020 OC: $45,223 OD: $51,102|| OE: $57,745 OF: $65,252 Submit Answer Tries 0/99
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