Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,450 units of a product from X Company for $11.00 each instead of the company's regular price of $18.00 each. The following income statement is for the 63,900 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 $1,150,200 511,200 $639,000 173,808 $465,192 For the year, fixed cost of goods sold were $143,775, and fixed selling and administrative costs were $94,572. The special order product has some unique features that will require additional material costs of $0.77 per unit and the rental of special equipment for $3,000. 4. Profit on the special order would be C: $15,186 OD: $20,197 OE: $26,862 OF: $35,727 DA: $8,585 OB: $11,418 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 $0.17. The effect of reducing the selling price will be to decrease firm profits by OA: $10,863 OB: $13,579 OC: $16,973 OD: $21,217 OE: $26,521 OF: $33,151 Submit Answer Tries 0/99