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As of December 1, 2021, X Company had produced and sold 60,800 units of its only product. The following is the company's December 1
As of December 1, 2021, X Company had produced and sold 60,800 units of its only product. The following is the company's December 1 Income Statement: Sales Cost of goods sold Gross profit Selling & administrative costs Profit Analysis of cost of goods sold reveals that $133,760 of it was fixed; a similar analysis of selling & administrative costs reveals that $66,880 of it was variable. Total $695,552 Per-Unit $11.44 443,840 7.30 251,712 4.14 158,080 2.60 $93,632 $1.54 On December 2, a company offered to buy 4,630 units for $10.07 each. Because the special order product was slightly different than the regular product, direct material costs were expected to increase by $0.10 per unit, and some special equipment would have to be rented for a total of $14,000. 4. What would profit have been on the special order? A: $2,953 OB: $3,455 OC: $4,042 OD: $4,730 OE: $5,534 OF: $6,474 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 by $0.35 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by B: $26,600 OC: $33,250 OD: $41,562 E: $51,953 OF: $64,941 A: $21,280 Submit Answer Tries 0/99
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