Question
During the year, X Company sold 64,800 units of one of its products for $18.00 each. The following cost functions are for these regular
During the year, X Company sold 64,800 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: $6.75X + $124,416 Selling and administrative expenses: $3.03X + $92,664 Variable selling and administrative expenses include sales commissions equal to 4% of sales. At the end of the year, a company offered to buy 4,060 units but was only willing to pay $12.00 each. X Company had the capacity to produce the 4,060 units. 4. If X Company had accepted the special order, firm profits would have increased by A: $4,810 B: $5,628 C: $6,584 D: $7,704 E: $9,013 OF: $10,545 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
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