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At the end of the year, a company offered to buy 4,410 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 4,410 units of a product from X Company for $12.00 each instead of the company's regular price of $18.00 each. The following income statement is for the 62,500 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 $1,125,000 492,500 $632,500 163,125 $469,375 For the year, fixed cost of goods sold were $120,000, and fixed selling and administrative costs were $79,375. The special order product has some unique features that will require additional material costs of $0.83 per unit and the rental of special equipment for $3,500. 4. Profit on the special order would be C: $13,567 OD: $18,044 OE: $23,998 OF: $31,918 A: $7,670 Submit Answer B: $10,201 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 $0.16. The effect of reducing the selling price will be to decrease firm profits by DA: $10,000 OB: $14,500 OC: $21,025 OD: $30,486 OE: $44,205 OF: $64,097 Submit Answer Tries 0/99

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