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Last year, X Company sold 60,000 units of its only product for $17.00 each. Total costs were as follows: $390,600 127,200 Cost of goods sold
Last year, X Company sold 60,000 units of its only product for $17.00 each. Total costs were as follows: $390,600 127,200 Cost of goods sold Variable Fixed Selling and administrative Variable Fixed $63,600 78,000 At the end of the year, a company offered to buy 4,480 units of the product for $11.00 each instead of $17.00. X Company's production manager thought that the special order units would probably require additional variable costs per unit of $1.00 and the rental of special equipment for $1,000. X Company had the capacity to produce the additional units, and there would have been no selling and administrative costs for the special order. But X Company still rejected the order. 5. If X Company had accepted the special order, firm profits would have increased by F: $44,663 OA: $14,635 OB: $18,294 OC: $22,868| OD: $28,584 OE: $35,730 Submit Answer Tries 0/99 6. There was concern that regular customers would have found out about the special order, and X Company's regular sales this year would have fallen by 750 units. The result of these lost sales would have been to reduce X Company's profits this year by OA: $1,103 OB: $1,600 | OC: $2,320 OD: $3,364 OE: $4,878 OF: $7,072 Submit Answer Tries 0/99
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