Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,110 units of a product from X Company for $11.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 66,800 units of the product that X Company has already made and sold to its regular customers: Sales Cost of goods sold Gross margin Selling and administrative costs Profit $1,135,600 569,804 $565,796 168,336 $397,460 For the year, fixed cost of goods sold were $140,948, and fixed selling and administrative costs were $78,824. The special order product has some unique features that will require additional material costs of $0.82 per unit and the rental of special equipment for $4,500. 4. Profit on the special order would be OA: $1,741 OB: $2,315 OC: $3,079 OD: $4,095 OE: $5,446 OF: $7,243 Submit Answer Tries 0/99 5. The marketing manager thinks that if X Company accepts the special order, regular customers will be lost unless the selling price for them is reduced by $0.15. The effect of reducing the selling price will be to decrease firm profits by C: $6,256 OD: $7,320 OE: $8,564 OF: $10,020 OA: $4,570 OB: $5,347 Submit Answer Tries 0/99