During the year, X Company sold 68,400 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: $6.04X + $132,696
• Selling and administrative expenses: $3.02X + $80,028

Variable selling and administrative expenses include sales commissions equal to 4% of sales. At the end of the year, a company offered to buy 4,310 units but was only willing to pay $11.00 each. X Company had the capacity to produce the 4,310 units. 1. If X Company had accepted the special order, firm profits would have increased by

A: $8,361

B: $11,121

C: $14,790

D: $19,671

E: $26,163

F: $34,797

Tries 0/99

2. 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: $2,796

B: $3,719

C: $4,946

D: $6,579

E: $8,750

F: $11,637