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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 61,600 units of
Questions 4 and 5 are based on the following information: As of December 1, 2021, X Company had produced and sold 61,600 units of its only product. The following is the company's December 1 Income Statement: Per-Unit Sales Cost of goods sold Gross profit Selling & administrative costs Profit Total $914,144 $14.84 560,560 9.10 353,584 5.74 160,160 2.60 $193,424 $3.14 Analysis of cost of goods sold reveals that $135,520 of it was fixed; a similar analysis of selling & administrative costs reveals that $67,760 of it was variable. On December 2, a company offered to buy 4,600 units for $13.55 each. Because the special order product was slightly different than the regular product, direct material costs were expected to decrease by $0.15 per unit, and some special equipment would have to be rented for a total of $16,000. 4. What would profit have been on the special order? A: $6,381 OB: $7,466 C: $8,735 OD: $10,220 OE: $11,957 OF: $13,990 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 $0.52 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by A: $15,235 OB: $22,091 OC: $32,032 D: $46,446 E: $67,347 F: $97,654 Submit Answer Tries 0/99
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