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During the year, X Company produced and sold 64,500 units of one of its products....

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Accounting

During the year, X Company produced and sold 64,500 units of one of its products. The following is the related revenue and cost information:

Revenue $1,096,500
Cost of goods sold 518,580
Selling and administrative costs 240,585
Profit $337,335

Total variable cost of goods sold were $401,835, and total variable selling and administrative costs were $171,570.

At the end of the year, a company offered to buy 4,030 units but was only willing to pay $12.00 each.

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

A: $5,961 B: $8,644 C: $12,533 D: $18,173 E: $26,351 F: $38,209
Tries 0/99

Q: 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 $0.30. 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: $19,350 B: $24,188 C: $30,234 D: $37,793 E: $47,241 F: $59,052

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