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Questions 4 and 5 are based on the following information: As of December 1, 2021, X Company had produced and sold 68,500 units of
Questions 4 and 5 are based on the following information: As of December 1, 2021, X Company had produced and sold 68,500 units of its only product. The following is the company's December 1 Income Statement: Sales Cost of goods sold Gross profit Selling & administrative costs Profit Per-Unit Total $930,230 $13.58 582.250 8.50 347,980 5.08 2.30 $2.78 157.550 $190,430 Analysis of cost of goods sold reveals that $130,150 of it was fixed; a similar analysis of selling & administrative costs reveals that $75,350 of it was variable. On December 2, a company offered to buy 4,740 units for $12.34 each. Because the special order product was slightly different than the regular product, direct material costs were expected to decrease by $0.1. per unit, and some special equipment would have to be rented for a total of $18,000. 4. What would profit have been on the special order? A: $3,245 B: $4,705 C: $6,822 D: $9,091 E: $14,343 F: $20,797 Submit Answer Tries 0/99 5. If X Company had accepted the special order, it would have had to lower the selling price of its regular product to $13.01 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by i A: $20,836 B: $24,379 C: $28,523 D: $33,372 E: $39,045 $45,683 Submit Answer Tries 0/99
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