Near the end of 2020, X Company had produced 61,900 units of its only product and had sold them for $13.13 each. Per- unit costs were: Direct materials $1.70 Direct labor 2.00 Variable 2.90 overhead Fixed 2.20 overhead Variable selling and 1.30 administration Fixed selling 1.30 administration Total $11.40 and Just before the year ended, a company offered to buy 4,150 units for $11.85 each. X Company had the capacity to produce the additional 4,150 units, but because the special order product was slightly different than the regular product, direct material costs were expected to increase by $0.10 per unit, and some special equipment would have to be rented for a total of $14,000. 1. What would profit have been on the special order? A: B: c: OD: E: F: $447 $941 $1,364 $1,978 $2,867 Submit Answer Tries 0/99 $649 2. Assume that X Company's marketing manager thought that if the company had accepted the special order, regular sales in 2021 would have fallen to 60,800 units. If the marketing manager was correct, the effect of this fall in regular sales would been to decrease company profit in 2021 by OF: A: B: Oc: OD: OE: $2,946 $3,682 $4,602 $5,753 $7,191 Submit Answer Trie $8,989 The following budgeted information is for X Company's two products, A and B, for 2022: Product Product A B Sales $92,900 $85,200 Contribution 39,947 34,932 margin Fixed costs Avoidable 20,350 21,140 Unavoidable 5,610 25,890 Profit $13,987 $-12,098 Because of the budgeted loss for Product B, X Company is considering dropping it in 2022. If Product B is dropped, the marketing department thinks that sales of Product A can be increased by $18,310. If X Company drops Product B in 2022 and increases sales of Product A, company profits will change by OA: B: C: D: E: F: $-5,919 $-6,688 $-7,558 $-8,540 $-9,650 $-10,905 Submit Answer Tries 0/99