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During the year, X Company produced and sold 60,200 units of one of its products....

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Accounting

During the year, X Company produced and sold 60,200 units of one of its products. The following is the related revenue and cost information:

Revenue $1,143,800
Cost of goods sold 549,024
Selling and administrative costs 221,536
Profit $373,240

Total variable cost of goods sold were $411,768, and total variable selling and administrative costs were $158,928.

At the end of the year, a company offered to buy 4,440 units but was only willing to pay $11.00 each.

If X Company had accepted the special order, firm profits would have increased by

A: $4,654 B: $6,749 C: $9,786 D: $14,189 E: $20,575 F: $29,833
Tries 0/99

There is concern that regular customers will find out about the special order, and in order to retain all of the X Company's regular customers, the regular selling price would have to be reduced by $0.59. If the selling price were reduced and next year's unit sales turn out to be the same as this year's sales, firm profits would fall by

A: $16,200 B: $18,954 C: $22,176 D: $25,946 E: $30,357 F: $35,518

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