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As of December 1, 2021, X Company had produced and sold 68,200 units of its only product. The following is the company's December 1
As of December 1, 2021, X Company had produced and sold 68,200 units of its only product. The following is the company's December 1 Income Statement: Total Per- Unit Sales $895,466 $13.13 Cost of goods 613,800 9.00 sold Gross profit 281,666 4.13 Selling & administrative 156,860 2.30 costs Profit $124,806 $1.83 Analysis of cost of goods sold reveals that $491,040 of it was variable; a similar analysis of selling & administrative costs reveals that $75,020 of it was fixed. On December 2, a company offered to buy 4,300 units for $11.74 each. Because the special order product was slightly different than the regular product, direct material costs were expected to increase by $0.20 per unit, and some special equipment would have to be rented for a total of $20,000. 4. What would profit have been on the special order? OA: $-2,077 Submit Answer B: $-2,762 OC: $-3,673 OD: $-4,886 OE: $-6,498 OF: $-8,642 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 $0.49 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by OA: $33,418 OB: $44,446 OC: $59,113 OD: $78,620 OE: $104,565 OF: $139,072 Submit Answer Tries 0/99
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