During the year, X Company sold 65,400 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:$6.03X + $134,070
• Selling and administrative expenses:$3.15X + $81,096

Variable selling and administrative expenses include sales commissions equal to 4% of sales. At the end of the year, a company offered to buy 4,380 units but was only willing to pay $12.00 each. X Company had the capacity to produce the 4,380 units.

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

A: $6,983 B: $9,287 C: $12,352 D: $16,428 E: $21,849 F: $29,059

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: $6,992 B: $8,181 C: $9,572 D: $11,199 E: $13,103 F: $15,330