Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During the year, X Company sold 62,800 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 62,800 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: $6.53X + $131,880 Selling and administrative expenses: $3.00x + $77,872 Variable selling and administrative expenses include sales commissions equal to 4% of sales. At the end of the year, a company offered to buy 4,860 units but was only willing to pay $12.00 each. X Company had the capacity to produce the 4,860 units. 4. If X Company had accepted the special order, firm profits would have increased by OA: $10,260|OB: $12,004 Oc: $14,045 OD: $16,433 OE: $19,226 OF: $22,495 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: $8,170 OB: $9,558 OC: $11,183 D: $13,085 OE: $15,309| OF: $17,912 A Tries 0/99
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started