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1.60 Questions 4 and 5 refer to the following information: Near the end of 2020, X Company had produced and sold 67,700 units of its
1.60 Questions 4 and 5 refer to the following information: Near the end of 2020, X Company had produced and sold 67,700 units of its only product. Costs for these units were: Total Per-Unit Direct materials $169,250 $2.50 Direct labor 108,320 Variable overhead 203,100 3.00 Fixed everthead 121,850 1.80 Variable selling and administration 83,948 1.24 Freed selling and administration 81,240 1.20 Total $767,715 $11.34 Just before the year ended, a company offered to buy 4,130 units for $14.17 each company had the capacity to produce the additional 4,530 unts, but because the special order product was slightly dimerent than the regular product, direct material costs were expected to increase by $0.20 per unit, and some special equipment would have to be rented for a total of $11,000 What would profitave been on the special order? w 0/5 3. Assume that i Company had complete se order it would have had to lower the selling price of a regular product to prevent the best regular customers. The price of Es regular product is normally at at 20% above to manufacturing cost per unit, but it would have to reduce it to $10.37 per unit. The effect of lowering the retinere would have been to decrease company profits by Tres 0/5
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