Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,770 units of a product from X Company for $12.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 68,900 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 $1,309,100 498,147 $810,953 175.006 $635,947 For the year, fixed cost of goods sold were $131,599, and fixed selling and administrative costs were $75,790. The special order product has some unique features that will require additional material costs of $0.72 per unit and the rental of special equipment for $2,000. 4. Profit on the special order would be C: $19,560 D: $26,015 E: $34,600 F: $46,019 A: $11,058 Submit Answer B: $14,707 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 $0.14. The effect of reducing the selling price will be to decrease firm profits by A: $2,318 B: $3,083 C: $4,100D: $5,453 E: $7,253 F: $9,646 Submit Answer Tries 0/99