Last year, X Company sold 64,600 units of its only product for $18.00...

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Last year, X Company sold 64,600 units of its only product for $18.00 each. Total costs were as follows: $388,892 143,412 Cost of goods sold Variable Fixed Selling and administrative Variable Fixed $78,812 67,830 At the end of the year, a company offered to buy 4,110 units of the product for $12.00 each instead of $18.00. X Company's production manager thought that the special order units would probably require additional variable costs per unit of $1.02 and the rental of special equipment for $1,500. X Company had the capacity to produce the additional units, and there would have been no selling and administrative costs for the special order. But X Company still rejected the order. 4. If X Company had accepted the special order, firm profits would have increased by Submit Answer Tries 0/3 5. There was concern that regular customers would have found out about the special order, and X Company's regular sales this year would have fallen by 950 units. The result of these lost sales would have been to reduce X Company's profits this year by Submit Answer Tries 0/3

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