Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

7th edition

978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792

More Books

Students also viewed these Accounting questions

Question

e the encryption keys, were weak and reused too often.

Answered: 1 week ago