Last year, X Company sold 63,700 units of its only product for $17.00 each. Total costs were as follows:

Cost of goods sold

Variable $429,975

Fixed 117,845

Selling and administrative

Variable $68,159

Fixed 93,639

At the end of the year, a company offered to buy 4,640 units of the product for $12.00 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 $0.95 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

A: $18952 B: 15162 $C: $23,690 D: $29,612 E: $46,270 F: $37,016

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 850 units. The result of these lost sales would have been to reduce X Company's profits this year by

A: $1,765 B: $2,560 C: $3,711 D: $5,381 E: $11,314 F: $7,803