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Questions 1 and 2 refer to the following information: X Company produces 67,500 units of its regular product each year and sells each one for
Questions 1 and 2 refer to the following information: X Company produces 67,500 units of its regular product each year and sells each one for $15.00. The following cost information is available: Direct materials Direct labor Variable overhead Fixed overhead Variable selling Fixed selling Total Total $107,325 126,225 201,150 154,575 83,700 89,100 $76 Per-Unit $1.59 1.87 2.98 2.29 1.24 1.32 $11.29 A company has offered to buy 4,110 units for $13.41 each. Because the special order product is slightly different than the regular product, direct material costs will increase to $1.84 per unit, and some special equipment will have to be rented for a total of $16,000. 1. What would profit on the special order be? A: $-4,789 B: $-3,475|| OC: $-1,854 OD: $-716| OE: $2,544|| OF: $6,523 Submit Answer Tries 0/99 2. Assume that if X Company accepts the special order, regular sales would fall by 1,200 units. The effect of this fall in regular sales would be to decrease company profit by A: $6,417 B: $7,508|| OC: $8,784 OD: $10,277 E: $12,024 OF: $14,069 Submit Answer Tries 0/99
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