During the year, X Company produced and sold 65,300 units of one of its products. The following is the related revenue and cost information:

Revenue

Cost of goods sold

Selling and administrative costs

Profit

Total variable cost of goods sold were $442,734, and total variable selling and administrative costs were $170,433.

At the end of the year, a company offered to buy 4,910 units but was only willing to pay $12.00 each.

$1,110,100

568,763

268.383

$272,954

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

A: $6,839

B: $8,001

C: $9,362

D: $10,953

E: $12,815

F: $14,994

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 $0.48. 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: $13,323

B: $17,719

C: $23,567

D: $31,344

E: $41,688

F: $55,444