Question
At the end of the year, a company offered to buy 4,760 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 4,760 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $19.00 each. The following information relates to the 61,500 units of the product that X Company made and sold to its regular customers during the year:
Revenue | $1,168,500 | ||
Cost of goods sold | 553,500 | ||
Selling and administrative costs | 145,140 | ||
Profit | $469,860 |
Fixed cost of goods sold for the year was $137,760, and fixed selling and administrative costs were $72,570. 6. Profit on the special order is $19,326
7. Consider the following three changes. Direct material costs on the special order will increase by $0.83 per unit, direct labor costs on the special order will decrease by $0.43 per unit, and X Company will have to rent special equipment for $1,500. The effect of these changes will be to reduce profit on the special order by?????
Just number 7 please
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