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At the end of the year, a company offered to buy 4,530 units of a product from X Company for $11.00 each instead of the
At the end of the year, a company offered to buy 4,530 units of a product from X Company for $11.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 63,100 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 $1,072,700 549,601 $523,099 148,916 $374,183 For the year, fixed cost of goods sold were $138,189, and fixed selling and administrative costs were $71,303. The special order product has some unique features that will require additional material costs of $0.89 per unit and the rental of special equipment for $3,500. 4. Profit on the special order would be A: $7,191|OB: $10,427|C: $15,119|D: $21,922|E: $31,787|OF: $46,091|| Submit Answer 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 $0.18. The effect of reducing the selling price will be to decrease firm profits by C: $11,358 OD: $13,289 E: $15,548 OF: $18,191 A: $8,297 Submit Answer B: $9,708 Tries 0/99
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