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  3. during the year, x company produced and sold 69,20

During the year, X Company produced and sold 69,200 units of one of its products....

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Accounting

During the year, X Company produced and sold 69,200 units of one of its products. The following is the related revenue and cost information:

Revenue $1,245,600
Cost of goods sold 563,288
Selling and administrative costs 274,032
Profit $408,280

Total variable cost of goods sold were $429,732, and total variable selling and administrative costs were $177,152.

At the end of the year, a company offered to buy 4,180 units but was only willing to pay $12.00 each.

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

A: $8,281 B: $9,357 C: $10,574 D: $11,948 E: $13,501 F: $15,257
Tries 0/99

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 $0.49. 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: $11,111 B: $13,889 C: $17,361 D: $21,701 E: $27,126 F: $33,908
Tries 0/99

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