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  3. during the year, x company produced and sold 68,50

During the year, X Company produced and sold 68,500 units of one of its products....

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Accounting

During the year, X Company produced and sold 68,500 units of one of its products. The following is the related revenue and cost information:

Revenue $1,164,500
Cost of goods sold 541,150
Selling and administrative costs 261,670
Profit $361,680

Total variable cost of goods sold were $415,110, and total variable selling and administrative costs were $175,360.

At the end of the year, a company offered to buy 4,970 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: $11,829 B: $13,366 C: $15,104 D: $17,067 E: $19,286 F: $21,793

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 $0.38. 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: $26,030B: $34,620C: $46,044D: $61,239E: $81,448F: $108,326

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