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As of December 1, 2021, X Company had produced and sold 62,300 units of its only product. The following is the company's December 1
As of December 1, 2021, X Company had produced and sold 62,300 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 Total $801,801 Per-Unit $12.87 523.320 18.40 278,481 4.47 161.980 $116,501 $1.87 Analysis of cost of goods sold reveals that $112,140 of it was fixed; analysis of selling & administrative costs reveals that $68,530 of it was variable On December 2, a company offered to buy 4.830 units for $11.66 each. Because the special onder 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? A: 13,334 $3,901 OC $4,564 D: $5.340 $6.248 OF $7,310 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 $12.32 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by OA: $25,031 OB: $29,286 Submit Answer Tries 0/99 C: $34,245 D: $40,090 $46,905 OF $54,879
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