During the year, X Company produced and sold 61,400 units of one of its products. The following is the related revenue and cost information:

Revenue			$1,043,800
Cost of goods sold			486,288
Selling and administrative costs			249,898
Profit			$307,614

Total variable cost of goods sold were $375,154, and total variable selling and administrative costs were $169,464.

At the end of the year, a company offered to buy 4,810 units but was only willing to pay $12.00 each.

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

A: $15,055

B: $20,024

C: $26,631

D: $35,420

E: $47,108

F: $62,654

Answer Submitted: Your final submission will be graded after the due date.

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5. 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 $0.42. 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