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Questions 5, 6, and 7 refer to the following information X Company sold 68,100 units of its only product for $18.00 each. Total costs were as follows: Last year, Cost of goods sold Variable Fixed Selling and administrative Variable Fixed $439,926 DO 138,924 $78,315 88.530 At the end of the year, a company offered to buy 4,880 units of the product but only for $11.00 each. X Company had the capacity to produce the additional units, and even though there would have been no additional selling and administrative costs, it rejected the offer. 8 pt 5. If X Company had accepted the special order, firm profits would have increased by 5. AO $16,658 BO $22,155 CO $29,466 DO $39,190 EO $52,123 FO $69,324 8 pt 6. X Company's production manager thought that the special order units might have required additional direct material and direct labor costs per unit of $0.86 and $0.23, respectively, and the rental of special equipment for $2,000. The combined effect of these changes would have been to reduce the special order profit by AO $2,401 BO $3,481 6. CO $5,048 DO $7,319 FO $15,389 EO $10,613 8 pt 7. X Company's marketing manager felt that in order for regular sales to continue at 68,100 units this year, the company would have had to reduce the regular selling price this year to $17.45. The result of this price reduction would have been to reduce X Company's profits this year by FO $37,455 EO $25,831 DO $17,815 CO $12,286 7. AO $5,843 BO $8,473

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