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Questions 1 and 2 refer to the following information: X Company produces 64,600 units of its regular product each year and sells each one for
Questions 1 and 2 refer to the following information: X Company produces 64,600 units of its regular product each year and sells each one for $14.00. The following cost information is available: Per- Total Unit Direct $109,820 $1.70 materials Direct 78,812 1.22 labor Variable overhead 172,482 2.67 Fixed overhead 125,970 1.95 Variable 92,378 1.43 selling Fixed 65,246 1.01 selling Total $644,708 $9.98 A company has offered to buy 4,520 units for $13.48 each. Because the special order product is slightly different than the regular product, direct material costs will increase to $1.85 per unit, and some special equipment will have to be rented for a total of $19,000. 1. What would profit on the special order be? A: B: c: D: E: F: $-12,591 $8,323 $9,521 $11,063 $16,420 $19,216 Submit Answer Tries 0/99 2. Assume that if X Company accepts the special order, regular sales would fall by 1,150 units. The effect of this fall in regular sales would be to decrease company profit by A: B: $1,816 $2,633 C: $3,818 D: E: F: $5,536 $8,027 $11,639
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