4. If X Company had accepted the special order, firm profits would have increased by OE: OF: OA: OB: Oc: OD: $11,279 $14,099 $17,623 $22,029 $27,536 $34,420 Submit Answer Tries 0/99 5. There is concern that regular customers will find out about

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question

Kl.320.

 

During the year, X Company produced and sold 60,800 units of
one of its products. The following is the related revenue and
cost information:
Revenue
Cost of goods
sold
Selling and
administrative
costs
Profit
$1,155,200
493,696
266,912
Total variable cost of goods sold were $358,720, and total
variable selling and administrative costs were $179,968.
OB:
A:
Oc:
$11,279 $14,099 $17,623
Submit Answer Tries 0/99
$394,592
At the end of the year, a company offered to buy 4,490 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
OA:
OB: Oc:
$8,252 $11,966 $17,351
Submit Answer Tries 0/99
OD: OE: OF:
$22,029 $27,536 $34,420
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 $0.60. 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
OD:
$25,159
OE: OF:
$36,480 $52,896
Transcribed Image Text:During the year, X Company produced and sold 60,800 units of one of its products. The following is the related revenue and cost information: Revenue Cost of goods sold Selling and administrative costs Profit $1,155,200 493,696 266,912 Total variable cost of goods sold were $358,720, and total variable selling and administrative costs were $179,968. OB: A: Oc: $11,279 $14,099 $17,623 Submit Answer Tries 0/99 $394,592 At the end of the year, a company offered to buy 4,490 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 OA: OB: Oc: $8,252 $11,966 $17,351 Submit Answer Tries 0/99 OD: OE: OF: $22,029 $27,536 $34,420 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 $0.60. 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 OD: $25,159 OE: OF: $36,480 $52,896
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