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During the year, X Company produced and sold 64,600 units of one of its products. The following is the related revenue and cost information: Revenue

During the year, X Company produced and sold 64,600 units of one of its products. The following is the related revenue and cost information:

Revenue $1,227,400
Cost of goods sold 555,560
Selling and administrative costs 270,028
Profit $401,812

Total variable cost of goods sold were $436,696, and total variable selling and administrative costs were $183,464.

At the end of the year, a company offered to buy 4,230 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: $7,951 B: $8,984 C: $10,152 D: $11,472 E: $12,963 F: $14,648
Tries 0/99

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 $0.47. 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: $12,436 B: $15,545 C: $19,432 D: $24,290 E: $30,362 F: $37,952

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