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As of December 1, 2021, X Company had produced and sold 61,900 units of its only product. The following is the company's December 1
As of December 1, 2021, X Company had produced and sold 61,900 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 $788,606 $12.74 501,390 8.10 287,216 4.64 154,750 2.50 $2.14 $132,466 Analysis of cost of goods sold reveals that $136,180 of it was fixed; a similar analysis of selling & administrative costs reveals that $92,850 of it was variable. On December 2, a company offered to buy 4,500 units for $11.54 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 $19,000. 1. What would profit have been on the special order? OA: $181 B: $241 OC: $321 OD: $427 OE: $568 Tries 0/99 F: $755 2. If X Company had accepted the special order, it would have had to lower the selling price of its regular product to $12.15 per unit to retain all of its regular customers. This price reduction would have decreased company profits by A: $25,187 B: $36,521 C: $52,955 D: $76,785 E: $111,339 OF: $161,441 Tries 0/99
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