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As of December 1, 2021, X Company had produced and sold 69,200 units of its only product. The following is the company's December 1 Income
As of December 1, 2021, X Company had produced and sold 69,200 units of its only product. The following is the company's December 1 Income Statement: Total Per-Unit Sales Cost of goods sold Gross profit Selling & administrative costs Profit $930,048 $13.44 560,520 8.10 369,528 5.34 186,840 $182,688 2.70 $2.64 Analysis of cost of goods sold reveals that $408,280 of it was variable; a similar analysis of selling & administrative costs reveals that $103,800 of it was fixed. On December 2, a company offered to buy 4,840 units for $12.18 each. Because the special order product was slightly different than the regular product, direct material costs were expected to decrease by $0.25 per unit, and some special equipment would have to be rented for a total of $20,000. 4. What would profit have been on the special order? Submit Answer Tries 0/4 5. If X Company had accepted the special order, it would have had to lower the selling price of its regular product by $0.57 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by Submit Answer Tries 0/4
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