During the year, X Company produced and sold 64,300 units of one of its products....
90.2K
Verified Solution
Link Copied!
Question
Accounting
During the year, X Company produced and sold 64,300 units of one of its products. The following is the related revenue and cost information:
Revenue
$1,221,700
Cost of goods sold
576,128
Selling and administrative costs
254,628
Profit
$390,944
Total variable cost of goods sold were $430,810, and total variable selling and administrative costs were $176,825.
At the end of the year, a company offered to buy 4,000 units but was only willing to pay $11.00 each.
4. If X Company had accepted the special order, firm profits would have increased by
A: $2,540
B: $3,174
C: $3,968
D: $4,960
E: $6,200
F: $7,750
Answer Submitted: Your final submission will be graded after the due date.
Tries 1/99
Previous Tries
5. 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 $0.56. 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
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
