During the year, X Company sold 63,900 units of one of its products for $19.00 each. The following cost functions are for these regular production and sales levels:

• Cost of goods sold:$6.11X + $117,576
• Selling and administrative expenses:$2.77X + $69,651

Variable selling and administrative expenses include sales commissions equal to 2% of sales. At the end of the year, a company offered to buy 4,050 units but was only willing to pay $12.00 each. X Company had the capacity to produce the 4,050 units.

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

A: $8,087B: $10,109C: $12,636D: $15,795E: $19,744F: $24,680

5. Now assume that there wouldnothave been sales commissions for the special order.If X Company had accepted the special order, firm profits would have increased by

A: $14,175B: $20,554C: $29,803D: $43,214E: $62,661F: $90,858