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Last year, X Company sold 68,400 units of its only product for $19.00 each. Total costs were as follows: Cost of goods sold Variable Fixed
Last year, X Company sold 68,400 units of its only product for $19.00 each. Total costs were as follows: Cost of goods sold Variable Fixed Selling and administrative Variable Fixed $387,828 149,796 $77,292 102,600 At the end of the year, a company offered to buy 4,090 units of the product but only for $11.00 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 $0.90 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 68,400 units this year, the company would have had to reduce the regular selling price this year to $18.67. The result of this price reduction would have been to reduce X Company's profits this year by Submit Answer Tries 0/3
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