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Last year, X Company sold 68,200 units of its only product for $17.00 each. Total costs were as follows: $449,438 139,128 Cost of goods sold
Last year, X Company sold 68,200 units of its only product for $17.00 each. Total costs were as follows: $449,438 139,128 Cost of goods sold Variable Fixed Selling and administrative Variable Fixed $83,204 72,974 At the end of the year, a company offered to buy 4,300 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 $0.97 and the rental of special equipment for $2,000. X Company had the capacity to produce the additional units, and there would have been no selling and administrati 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: $17,092 B: $19,998| OC: $23,397 D: $27,375 E: $32,028 F: $37,473 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 900 units. The result of these lost sales would have been to reduce X Company's profits this year by A: $5,293|OB: $6,617| OC: $8,271 OD: $10,339|| OE: $12,923| OF: $16,154
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