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During the year, X Company sold 60,900 units of one of its products for $17.00 each. The following cost functions are for these regular production
During the year, X Company sold 60,900 units of one of its products for $17.00 each. The following cost functions are for these regular production and sales levels: Cost of goods sold: $6.30X + $124,845 Selling and administrative expenses: $2.68X + $85,260 Variable selling and administrative expenses include sales commissions equal to 2% of sales. At the end of the year, a company offered to buy 4,710 units but was only willing to pay $11.00 each. X Company had the capacity to produce the 4,710 units. 4. If X Company had accepted the special order, firm profits would have increased by OA: $3,121 OB: $4,525OC: $6,562 OD: $9,514 OE: $13,796 OF: $20,004 Tries 0/99 5. Now assume that there would not have been sales commissions for the special order. If X Company had accepted the special order, firm profits would have increased by OA: $9,501 OB: $11,116 OC: $13,005 OD: $15,216 OE: $17,803 OF: $20,829 * Tries 0/99
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