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As of December 1, 2021, X Company had produced and sold 66,800 units of its only product. The following is the company's December 1
As of December 1, 2021, X Company had produced and sold 66,800 units of its only product. The following is the company's December 1 Income Statement: Per-Unit Sales Cost of goods sold Gross profit Selling & administrative costs Profit Total $935,200 $14.00 567,800 8.50 367,400 5.50 200,400 $167,000 3.00 $2.50 Analysis of cost of goods sold reveals that $427,520 of it was variable; a similar analysis of selling & administrative costs reveals that $100,200 of it was fixed. On December 2, a company offered to buy 4,880 units for $12.72 each. Because the special order product was slightly different than the regular product, direct material costs were expected to increase by $0.15 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 $0.53 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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