Last year, X Company sold 67,200 units of its only product for $17.00 each. Total costs were as follows:

At the end of the year, a company offered to buy 4,780 units of the product but only for $12.00 each. X Company had the capacity to produce the additional units, and even though there would have been no additional selling and administrative costs, it rejected the offer. 5. If X Company had accepted the special order, firm profits would have increased by

Tries 0/3

6. X Company's production manager thought that the special order units might have required additional direct material and direct labor costs per unit of $0.72 and $0.27, respectively, and the rental of special equipment for $1,000. The combined effect of these changes would have been to reduce the special order profit by

Tries 0/3

7. X Company's marketing manager felt that in order for regular sales to continue at 67,200 units this year, the company would have had to reduce the regular selling price this year to $16.41. The result of this price reduction would have been to reduce X Company's profits this year by

Questions 5, 6, and 7 refer to the following information Last year, X Company sold 67,200 units of its only product for $17.00 each. Total costs were as follows: Cost of goods sold Variable $450,912 Fixed 120,960 Selling and administrative Variable $90,720 Fixed 96,096 At the end of the year, a company offered to buy 4,780 units of the product but only for $12.00 each. X Company had the capacity to produce the additional units, and even though there would have been no additional selling and administrative costs, it rejected the offer. 5. If X Company had accepted the special order, firm profits would have increased by Submit Answer Tries 0/3 6. X Company's production manager thought that the special order units might have required additional direct material and direct labor costs per unit of $0.72 and $0.27, respectively, and the rental of special equipment for $1,000. The combined effect of these changes would have been to reduce the special order profit by Submit Answer Tries 0/3 7. X Company's marketing manager felt that in order for regular sales to continue at 67,200 units this year, the company would have had to reduce the regular selling price this year to $16.41. The result of this price reduction would have been to reduce X Company's profits this year by Submit Answer Tries 0/3