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As of December 1, 2021, X Company had produced and sold 67,100 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 67,100 units of its only product. The following is the company's December 1 Income Statement: Total Per- Unit Sales $873,642 $13.02 Cost of goods sold 543,510 8.10 Gross profit 330,132 4.92 Selling & administrative 154,330 2.30 costs Profit $175,802 $2.62 Analysis of cost of goods sold reveals that $395,890 of it was variable; a similar analysis of selling & administrative costs reveals that $80,520 of it was fixed. On December 2, a company offered to buy 4,920 units for $11.63 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 $14,000. 4. What would profit have been on the special order? Submit Answer Tries 0/3 5. If X Company had accepted the special order, it would have had to lower the selling price of its regular product to $12.45 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by
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