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rBCF- - ACC230, Fall 2018 - Survey of Accounting Conceyts Questions 5, 6, and 7 refer to the following information The following cost functions apply

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rBCF- - ACC230, Fall 2018 - Survey of Accounting Conceyts Questions 5, 6, and 7 refer to the following information The following cost functions apply to X Company's regular prod apany's regular production and sales during the year Cost of goods sold: $6.49 (x)+ $128,234 Selling and administrative expenses: -84 Plus C $1.12 (X) +$76,676 Where X is the number of units produced and sold. During the year, X Company sold 06, 100 units Cox end of the $18,00 ench. At the had the eapncity year, a company offered to buy 4,130 units but wns only willing to pay $12.00 ench. X to produce the additional 4,130 units. If X Company had accepted the special order, firm prots would have increased by A$8,270 EO 815,496 FO 818,131 5. BO$9,675 $11,320 DO$13,245 8 pt s. Consider the following three changes. Direct material co unit, direct labor costs on the special order would have decreased by $0.45 per unit, and X Company would special equipment for $1,000. Independent of your answer to (6), the effect of these changes would have been to reduce profit ets on the special order would have increased by $0.78 per on the special order by $2363 O $3,143 6. AO $755 BO 1,004 CO $1,336 DO S1,777 59. If the selling price were reduced and next year's unit sales turned out to be the same as this year's sales, firm profits would have fallen by 8 pt7. In order to retain all of X Company's regular customers, it would have had to reduce the regular selling price by 7. AO $26,896 BO $38,999 CO $56,549 DO $81,995 EO $118,803 FO S1T2,395

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