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As of December 1, 2021, X Company had produced and sold 62,700 units of its only product. The following is the company's December 1
As of December 1, 2021, X Company had produced and sold 62,700 units of its only product. The following is the company's December 1 Income Statement: Per-Unit Sales Cost of goods sold Total $839,553 $13.39 570,570 9.10 Gross profit 268,983 4.29 Selling & administrative costs Profit 163,020 $105,963 2.60 $1.69 Analysis of cost of goods sold reveals that $112,860 of it was fixed; a similar analysis of selling & administrative costs reveals that $87,780 of it was variable. On December 2, a company offered to buy 4,000 units for $12.02 each. Because the special order product was slightly different than the regular product, direct material costs were expected to decrease by $0.15 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? 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 by $0.39 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by
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