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During the year, X Company sold 68,600 units of one of its products for $19.00 each. The following cost functions are for these regular production
During the year, X Company sold 68,600 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: $6.49X + $134,456 Selling and administrative expenses: $2.87X + $94,668 Variable selling and administrative expenses include sales commissions equal to 3% of sales. At the end of the year, a company offered to buy 4,750 units but was only willing to pay $11.00 each. X Company had the capacity to produce the 4,750 units. 4. If X Company had accepted the special order, firm profits would have increased by D: $7,790 OE: $10,361 OF: $13,780 OA: $3,311|OB: $4,404 OC: $5,857 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: $6,718|OB: $8,398 C: $10,498 D: $13,122 OE: $16,402 F: $20,503 Submit Answer Tries 0/99
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