Questions 4 and 5 refer to the fuIIUwing problem: At the end of the year, a company offered to buy 4,870 units of a product from X Company for $12.00 each instead of the company's regular price of $18.00 each. The following income statement is for the 61,400 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 $1,105,200 496,726 $608,474 176,832 $431,642 For the year, variable cost of goods sold were $373,926, and variable selling and administrative costs were $84,732. The special order product has some unique features that will require additional material costs of $0.86 per unit and the rental of special equipment for $2,000. 4. Profit on the special order would be A: $11,001 Submit Answer B: $12,431|C: $14,047|OD: $15,873 OE: $17,936|OF: $20,268 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 $0.20. The effect of reducing the selling price will be to decrease firm profits by A: $12,280 Submit Answer B: $16,3320 C: $21,722|D: $28,890 OE: $38,424|OF: $51,104| Tries 0/99