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Actually i did 6 and 7, i just don't know how to do 5 and 8, please help Questions 5, 6, and 7 refer to
Actually i did 6 and 7, i just don't know how to do 5 and 8, please help
Questions 5, 6, and 7 refer to the following information Last year, X Company sold 63.600 units of its only product for $17.00 each. Total costs were as follows: Cost of goods sold Variable Fixed 8389,868 136,104 Selling and administrative Variable $71.232 80.772 Fixed At the end of the year, a company offered to buy 4.860 units of the product but only for $12.00 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 $17.812 BO $20,840 DO $28,528 FO $39,052 CO $24,383 EO $33,378 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 $0.84 and $0.25, respectively, and the rental of special equipment for $1,000. The combined effect of these changes would have been to reduce the special order profit by 6 DO $8,376 BO $4,735 CO $6,297 AO $3.560 EO $11,139 FO $14,815 8 pt 7. X Company's marketing manager felt that in order for regular sales to continue at 63,600 units this year, the company would have had to reduce the regular selling price this year to $16.61. The result of this price reduction would have been to reduce X Company's profits this year by 7 AO $12,700 CO $19,843 DO $24,804 BO $15,875 EO $31,005 FO $38,756 8 pt The following income statement is for X Company and its only two products - A and B: Product B $85,440 46,138 $39.302 Product A Total $91,510 53,076 $38,434 $176,950 99,213 $77,737 Sales Variable Costs Contribution margin Fixed costs: 32,950 29,130 $22.778 21,670 5,510 $11,254 54,620 34,640 $-11,523 Avoidable Unavoidable Profit Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be 8. AO $-14,301 EO S-34,914 FO S-43,642 BO S-17,876 CO $-22,345 DO S-27,931Step by Step Solution
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