Question
As of December 1, 2021, X Company had produced and sold 60,200 units of its only product. The following is the company's December 1
As of December 1, 2021, X Company had produced and sold 60,200 units of its only product. The following is the company's December 1 Income Statement: Total Per- Unit Sales $825,944 $13.72 Cost of goods sold Gross profit 529,760 8.80 296,184 4.92 Selling & administrative 120,400 2.00 costs Profit $175,784 $2.92 Analysis of cost of goods sold reveals that $415,380 of it was variable; a similar analysis of selling & administrative costs reveals that $60,200 of it was fixed. On December 2, a company offered to buy 4,140 units for $12.42 each. Because the special order product was slightly different than the regular product, direct material costs were expected to increase by $0.25 per unit, and some special equipment would have to be rented for a total of $15,000. 4. What would profit have been on the special order? OA: $856 OB: $1,138|| OC: $1,514 Submit Answer Tries 0/99 D: $2,013 E: $2,678 OF: $3,561 5. If X Company had accepted the special order, it would have had to lower the selling price of its regular product by $0.43 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by OA: $22,125 B: $25,886 OC: $30,287 OD: $35,435 OE: $41,459 OF: $48,507 Submit Answer Tries 0/99
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