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Last year, X Company sold 67,700 units of its only product for $19.00 each. Total costs were as follows: $488,794 146,909 Cost of goods sold
Last year, X Company sold 67,700 units of its only product for $19.00 each. Total costs were as follows: $488,794 146,909 Cost of goods sold Variable Fixed Selling and administrative Variable Fixed $85,302 74,470 At the end of the year, a company offered to buy 4,560 units of the product for $12.00 each instead of $19.00. 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 B: $15,509 OC: $18,145 OD: $21,230 OE: $24,839 OF: $29,062 A: $13,255 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 500 units. The result of these lost sales would have been to reduce X Company's profits this year by D: $3,843 E: $4,496 OF: $5,260 A: $2,399 OB: $2,807 Oc: $3,284 Submit Answer Tries 0/99
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