Question
At the end of the year, a company offered to buy 4,430 units of a product from X Company for $11.00 each instead of the
At the end of the year, a company offered to buy 4,430 units of a product from X Company for $11.00 each instead of the company's regular price of $17.00 each. The following functional income statement is for the 64,200 units of the product that X Company has already made and sold to its regular customers:
Sales $1,091,400
Cost of goods sold 554,046
Gross margin $537,354
Selling and administrative costs 153,438
Profit $383,916
Fixed cost of goods sold for the year was $130,326, and fixed selling and administrative costs were $69,336. The special order product has some unique features that will require additional material costs of $0.85 per unit and the rental of special equipment for $4,500. 5. Profit on the special order would be?
I just need the profit on the special order. I only have ONE try left! Last time I posted it, the answer was wrong.
Thank you!!!!!
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