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8 pt. X Company's production manager thought that the special order units might have required additional direct material and direct labor costs per unit of $0.81 and 50.21, respectively, and the rental of special equipment for $1,500. The combined effect of these changes would have been to reduce the special order profit by 6. AO 84,955 BO $6,590 CO 88,764 DO $11,657 EO $15,503 FO $20,620 8 pt 7 X Company's marketing manager felt that in order for regular sales to continue at 65,000 units this year, the company would have had to reduce the regular selling price this year to $18.61. The result of this price reduction would have been to reduce X Company's profits this year by 7. AO $25,350 B O $33.716 CO S44,842 DO 859,639 EO $79,320 FO $105,496 8 pt The following income statement is for X Company and its only two products - A and B: Total Product A Product B Sales $185,020 592.210 $92,810 Variable Costs 101.755 51,638 50.117 Contribution margin 583.265 $40,572 $42.693 Fixed costs: Avoidable 72,850 24.710 48.170 Unavoidable 34,220 7,560 26,660 Profit $-23,835 58,302 8-32,137 Because Product B is showing a loss, X Company is considering dropping it and saving te voldable fixed costs. If it drops Product B, X Company's new profits will be 8. AO S-14,686 BO S-18,358 CO 8-22,947 DO 8-28,684 EO 8-35,855 FO S-14.818

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