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At the end of the year, a company offered to buy 4,730 units of a...

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Accounting

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At the end of the year, a company offered to buy 4,730 units of a product from X Company for $11.00 each instead of the company's regular price of $18.00 each. The following income statement is for the 64,400 units of the product that X Company has already made and sold to its regular customers: Sales Cost of goods sold Gross margin Selling and administrative costs Profit $1,159,200 531,944 $627,256 173,880 $453,376 For the year, fixed cost of goods sold were $122,360, and fixed selling and administrative costs were $83,076. The special order product has some unique features that will require additional material costs of $0.85 per unit and the rental of special equipment for $3,000. 4. Profit on the special order would be A: $1,288 Submit Answer B: $1,868 C: $2,709 OD: $3,927 E: $5,695 F: $8,257 Answer Submitted: Your final submission will be graded after the due date. Tries 1/99 Previous Tries 5. The marketing manager thinks that if X Company accepts the special order, regular customers will be lost unless the selling price for them is reduced by $0.14. The effect of reducing the selling price will be to decrease firm profits by C: $10,188 OD: $11,513 E: $13,009 OF: $14,700 A: $7,979 Submit Answer B: $9,016 Tries 0/99

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