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The following information is for Questions 4 and 5 During the year, X Company sold 67,300 units of one of its products for $18.00 each.
The following information is for Questions 4 and 5 During the year, X Company sold 67,300 units of one of its products for $18.00 each. The following cost functions are for these regular production and sales levels: Cost of goods sold: $5.92X + $152,098 Selling and administrative expenses: $2.85X + $78,068 Variable selling and administrative expenses include sales commissions equal to 3% of sales. At the end of the year, a company offered to buy 4,260 units but was only willing to pay $11.00 each. X Company had the capacity to produce the 4,260 units. 4. If X Company had accepted the special order, firm profits would have increased by A: $9,500 F: $28,991 B: $11,875|OC: $14,843 OD: $18,554 OE: $23,193 Tries 0/99 Submit Answer 5. Now assume that there would not have been sales commissions for the special order. If X Company had accepted the special order, firm profits would have increased by A: $2,836 B: $3,771 OC: $5,016| OD: $6,671| OE: $8,872 F: $11,800
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