During the year, X Company produced and sold 60,200 units of one of its products. The following is the related revenue and cost information:

Revenue			$1,143,800
Cost of goods sold			549,024
Selling and administrative costs			221,536
Profit			$373,240

Total variable cost of goods sold were $411,768, and total variable selling and administrative costs were $158,928.

At the end of the year, a company offered to buy 4,440 units but was only willing to pay $11.00 each.

If X Company had accepted the special order, firm profits would have increased by

A: $4,654

B: $6,749

C: $9,786

D: $14,189

E: $20,575

F: $29,833

Tries 0/99

There is concern that regular customers will find out about the special order, and in order to retain all of the X Company's regular customers, the regular selling price would have to be reduced by $0.59. If the selling price were reduced and next year's unit sales turn out to be the same as this year's sales, firm profits would fall by

A: $16,200

B: $18,954

C: $22,176

D: $25,946

E: $30,357

F: $35,518