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The following information is for Questions 4 and 5 Last year, X Company sold 66,000 units of its only product for $19.00 each. Total costs
The following information is for Questions 4 and 5 Last year, X Company sold 66,000 units of its only product for $19.00 each. Total costs were as follows: Cost of goods sold Variable Fixed Selling and administrative Variable $415,800 123,420 $88,440 88,440 Fixed At the er of the year, a company offere to buy 4,300 units of the product for $12.00 instead of $19.00. X Company's production manager thought that the special order units would probably require additional variable costs per unit of $1.19 and the rental of special equipment for $1,500. X Company had the capacity to produce the additional units, and there would have been no selling and administrative costs for the special order. But X Company still rejected the order. 4. If X Company had accepted the special order, firm profits would have increased by Tries 0/3 5. There was concern that regular customers would have found out about the special order, and X Company's regular sales this year would have fallen by 850 units. The result of these lost sales would have been to reduce X Company's profits this year by
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