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As of December 1, 2021, X Company had produced and sold 69,600 units of its only product. The following is the company's December 1
As of December 1, 2021, X Company had produced and sold 69,600 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 $984,144 $14.14 605,520 8.70 378,624 5.44 187,920 2.70 $190,704 $2.74 Analysis of cost of goods sold reveals that $146,160 of it was fixed; a similar analysis of selling & administrative costs reveals that $90,480 of it was variable. On December 2, a company offered to buy 4,150 units for $12.80 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 $18,000. 4. What would profit have been on the special order? OA: $1,025 OB: $1,199 OC: $1,403 OD: $1,641 E: $1,920 OF: $2,246 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 $0.56 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by OA: $24,945 OB: $31,181 OC: $38,976 OD: $48,720 OE: $60,900 OF: $76,125 Submit Answer Tries 0/99
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