During the year, X Company produced and sold 64,500 units of one of its products. The following is the related revenue and cost information:

Revenue			$1,096,500
Cost of goods sold			518,580
Selling and administrative costs			240,585
Profit			$337,335

Total variable cost of goods sold were $401,835, and total variable selling and administrative costs were $171,570.

At the end of the year, a company offered to buy 4,030 units but was only willing to pay $12.00 each.

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

A: $5,961

B: $8,644

C: $12,533

D: $18,173

E: $26,351

F: $38,209

Tries 0/99

Q: 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 $0.30. 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: $19,350

B: $24,188

C: $30,234

D: $37,793

E: $47,241

F: $59,052