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AS x Company produced and sold 61,200 units of its only product. The following is the company's December 1 Income Statement: Per- Total Unit
AS x Company produced and sold 61,200 units of its only product. The following is the company's December 1 Income Statement: Per- Total Unit Sales $822,528 $13.44 Cost of goods 514,080 8.40 sold 5.04 Gross profit 308,448 administrative 165,240 2.70 Selling & costs Profit $143,208 $2.34 Analysis of cost of goods sold reveals that $379,440 of it was variable; a similar analysis of selling & administrative costs reveals that $73,440 of it was fixed. On December 2, a company offered to buy 4,650 units for $12.20 each. Because the special order product was slightly different than the regular product, direct material costs were expected to decrease by $0.15 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? OA: OB: $3,698 $4,622 OC: OD: OE: OF: $5,778 $7,223 $9,028 $11,285 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 $0.40 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by A: B: Oc: D: OE: $24,480 $27,662 $31,259 $35,322 Submit Answer Tries 0/99 F: $39,914 $45,103
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