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During the year, X Company sold 64,100 units of one of its products for $18.00 each. The following cost functions are for these regular production
During the year, X Company sold 64,100 units of one of its products for $18.00 each. The following cost functions are for these regular production and sales levels: Cost of goods sold: $6.25X + $128,200 Selling and administrative expenses: $2.81X + $67,305 Variable selling and administrative expenses include sales commissions equal to 2% of sales. At the end of the year, a company offered to buy 4,150 units but was only willing to pay $12.00 each. X Company had the capacity to produce the 4,150 units. . 4. If X Company had accepted the special order, firm profits would have increased by A: $12,201 B: $14,275 C: $16,702 D: $19,541 E: $22,863 F: $26,750 Submit Answer 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 A: $2,137 B: $3,098 C: $4,492 D: $6,514 E: $9,445 F: $13,695 Submit Answer Tries 0/99
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