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At the end of the year, a company offered to buy 4,490 units of a product from X Company for a special price of $12.00
At the end of the year, a company offered to buy 4,490 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $18.00 each. The following information relates to the 67,400 units of the product that X Company made and sold to its regular customers during the year: Cost of goods sold Period costs Total Per-Unit $8.55 2.69 Total $576,270 181,306 $11.24 $757,576 Fixed cost of goods sold for the year were $122,668, and fixed period costs were $86,946. Variable period costs include selling commissions equal to 3% of revenue. 6. Profit on the special order is $17,376 You are correct. Your receipt no. is 152-1887 7. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.81 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit? $6,062 You are correct. Your receipt no. is 152-6680 8. There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 850 units. As a result of these lost sales, X Company's profits would fall by Submit Answer Tries 0/3
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