Questions 1 and 2 refer to the following information: X Company produces 60,900 units of its regular product each year and sells each one for $15.00. The following cost information is available: Total Direct materials Per-Unit $2.30 1.44 2.63 $140,070 87,696 160,167 109,620 65,772 77,343 $640,668 Direct labor Variable overhead Fixed overhead Variable selling Fixed selling Total 1.80 1.08 1.27 $10.52 A company has offered to buy 4,720 units for $13.45 each. Because the special order product is slightly different than the regular product, direct material costs will increase by $0.10 per unit, and some special equipment will have to be rented for a total of $18,000. 1. What would profit on the special order be? A: $-21,852 B: $-12,871 C: $7,652 D: $9,848 E: $16,836 F: $37,674 Submit Answer Tries 0/99 2. Assume that if X Company accepts the special order, regular sales would fall to 59,700 units. The effect of this fall in regular sales would be to decrease company profit by A: $9,060 B: $11,325 C: $14,156 D: $17,695 E: $22,119 F: $27,649 Submit Answer Tries 0/99