X Company produces 61,700 units of its regular product each year and sells each one for $14.00. The following cost information is available:

	Total	Per-Unit
Direct materials	$100,571	$1.63
Direct labor	83,912	1.36
Variable overhead	157,952	2.56
Fixed overhead	133,272	2.16
Variable selling	71,572	1.16
Fixed selling	88,231	1.43
Total	$635,510	$10.30

A company has offered to buy 5,000 units for $13.56 each. Because the special order product is slightly different than the regular product, direct material costs will increase to $1.83 per unit, and some special equipment will have to be rented for a total of $11,000.

1. What would profit on the special order be?

A: $-122,000

B: $-98,800

C: $-45,700

D: $-36,500

E: $-28,800

F: $22,250

Answer Submitted: Your final submission will be graded after the due date.

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2. Assume that if X Company accepts the special order, regular sales would fall by 1,100 units. The effect of this fall in regular sales would be to decrease company profit by?

A: $6,415

B: $8,019

C: $10,024

D: $12,530

E: $15,662

F: $19,578