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At the end of the year, a company offered to buy 4,280 units of a product from X Company for $11.00 each instead of the

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At the end of the year, a company offered to buy 4,280 units of a product from X Company for $11.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 61,500 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 $1,168,500 544,275 $624,225 134,685 $489,540 For the year, fixed cost of goods sold were $126,075, and fixed selling and administrative costs were $73,185. The special order product has some unique features that will require additional material costs of $0.79 per unit and the rental of special equipment for $2,500. 4. Profit on the special order would be E: $11,276 OF: $12,742 A: $6,916 Submit Answer B: $7,815 OC: $8,831 OD: $9,979 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 A: $9,987 OB: $11,685 OC: $13,671 OD: $15,996 OE: $18,715 OF: $21,896 Submit Answer Tries 0/99

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