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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 65,800 units of
Questions 4 and 5 are based on the following information: As of December 1, 2021, X Company had produced and sold 65,800 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 $14.14 Total $930,412 572,460 8.70 357,952 5.44 190,820 2.90 $167,132 $2.54 Analysis of cost of goods sold reveals that $144,760 of it was fixed; a similar analysis of selling & administrative costs reveals that $98,700 of it was variable. On December 2, a company offered to buy 4,960 units for $12.84 each. Because the special order product was slightly different than the regular product, direct material costs were expected to increase by $0.15 per unit, and some special equipment would have to be rented for a total of $14,000. 4. What would profit have been on the special order? OA: $9,262 B: $11,578 OC: $14,472 OD: $18,091 E: $22,613 OF: $28,267 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 by $0.45 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by OA: $15,801 OB: $18,488 C: $21,631 OD: $25,308 E: $29,610 OF: $34,644 Submit Answer Tries 0/99
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