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At the end of the year, a company offered to buy 4,200 units of a product from X Company for $12.00 each instead of the

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At the end of the year, a company offered to buy 4,200 units of a product from X Company for $12.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 60,200 units of the product that X Company has already made and sold to its regular customers: Sales Cost of goods sold Gross margin Selling and administrative costs Profit $1,143,800 493,038 $650,762 143.276 $507,486 For the year, fixed cost of goods sold were $123,410, and fixed selling and administrative costs were $62,006. The special order product has some unique features that will require additional material costs of $0.78 per unit and the rental of special equipment for $2,000. 4. Profit on the special order would be C: $21,353 D: $26,691 E: $33,364 F: $41,705 A: $13,666 Submit Answer B: $17,082 Tries 0/99 5. The marketing manager thinks that if X Company accepts the special order, regular customers will be lost unless the selling price for them is reduced by $0.19. The effect of reducing the selling price will be to decrease firm profits by D: $7,888 E: $11,430 F: $16,585 A $2,587 Submit Answer B: $3,752C: $5,440 Tries 0/99

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