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Questions 5, 6, and 7 refer to the following information Last year, X Company sold 68,100 units of its only product for $18.0
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Answer #1

Answer 5 : B $22155

Calculated as

Variable cost of manufacturing per unit = $439926/68100 = $6.46

Selling price for special order = $11

Extra contribution from special order = ($11-$6.46) x 4880 = $22155.20 or $22155

Answer 6 D $7319

Calculated as

Decrease in income from special order = ($0.86+0.23) x 4880 + $2000 = $7319.20 or $7319

Answer 7. F $37455

Calculated as

Decrease in total income = 687100 x ($18-$14.45) = $37455

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