Cost of goods sold was 60% variable while the operating expenses were 70% fixed. The company received a special order for 2,000 units at $70 each. Acceptance of the order would result in an additional shipping cost of $0.3 per unit and the need to purchase a new machine for $1,200.

1)The acceptance of the order will results a sales of * $148,000 $152,000 $300,000 None of the options ..... 2)The acceptance of the order will results a fixed expenses of * $101,200 $1,200 $1,800 None of the options .... 3)The acceptance of the order will results a total additional variable costs per unit of * $0.3 $51 $61.8 None of the options .... 4)The company should accept or reject the order? * Reject and save $16,400 Accept and gain $16,400 Accept and gain $15,200 None of the options Assume that the special order of the 2,000 units will be sold for $60 each instead of $70, all other factors are the same; will you recommend the company to reject or accept the order? * Accept Reject

TSC Company reported the following operating results while operating at 70% of plant capacity: Sales (25,000 units) Cost of Goods Sold $3,750,000 2,125,000 1,625,000 875,000 Gross Profit Operating Expenses Net Income $750,000