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Questions 1 and 2 refer to the following information: X Company produces 63,200 units of its regular product each year and sells each one for
Questions 1 and 2 refer to the following information: X Company produces 63,200 units of its regular product each year and sells each one for $14.00. The following cost information is available: Total Per- Unit $120,080 $1.90 100,488 1.59 176,960 2.80 Direct materials Direct labor Variable overhead Fixed overhead Variable selling Fixed selling Total 126,400 2.00 77,104 1.22 81,528 1.29 $682,560 $10.80 A company has offered to buy 4,720 units for $13.60 each. Because the special order product is slightly different than the regular product, direct material costs will increase to $2.00 per unit, and some special equipment will have to be rented for a total of $17,000. 1. What would profit on the special order be? OA: $-71,059 OB: $8,271 OC: $11,273 OD: $15,408 DE: $38,532 OF: $52,481 Submit Answer Tries 0/99 2. Assume that if X Company accepts the special order, regular sales would fall by 1,100 units. The effect of this fall in regular sales would be to decrease company profit by OA: $4,378 OB: $4,948 OC: $5,591 OD: $6,318 OE: $7,139 OF: $8,067 Submit Answer Tries 0/99
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