Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,750 units of a product
Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,750 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 62,100 units of the product that X Company has already made and sold te its regular customers: $1,055,700 Sales Cost of goods 522,261 sold $533,439 Gross margin Selling and administrative costs Profit 158,355 $375,084 For the year, fixed cost of goods sold were $121,095, and fixed selling and administrative costs were $75,762. The special order product has some unique features that will require additional material costs of $0.71 per unit and the rental of special equipment for $4,000. 4. Profit on the special order would be B: $9,844 C: $12,305 D: $15,381E: $19,226 F: $24,033 A: $7,875 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 $0.14. The effect of reducing the selling price will be to decrease firm profits by C: $6,025 D: $6,809E: $7,694 OF: $8,694 A: $4,719 Submit Answer *70 me 120 C: 35025 D: 36,40| : 7,59 | 63 38.69 B: $5,332 Tries 0/99
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started