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Last year, X Company sold 66,900 units of its only product for $17.00 each. Total costs were as follows: Cost of goods sold Variable Fixed
Last year, X Company sold 66,900 units of its only product for $17.00 each. Total costs were as follows: Cost of goods sold Variable Fixed Selling and administrative Variable Fixed $397,386 123,765 $88,977 88,308 At the end of the year, a company offered to buy 4,400 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 $1.05 and the rental of special equipment for $1,500. 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 OA: $8,266 OB: $10,332| OC: $12,915 OD: $16,144 OE: $20,180 OF: $25,225 Submit Answer Answer Submitted: Your final submission will be graded after the due date. Tries 1/99 Previous Tries 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 700 units. The result of these lost sales would have been to reduce X Company's profits this year by OA: $3,697| OB: $4,177| OC: $4,720 OD: $5,334| OE: $6,027 OF: $6,811
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