Question
At the end of the year, a company offered to buy 4,050 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 4,050 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 63,200 units of the product that X Company made and sold to its regular customers during the year: Per-Unit Total Cost of goods sold $8.03 $507,496 Period costs 2.84 179,488 Total $10.87 $686,984 Fixed cost of goods sold for the year were $128,928, and fixed period costs were $85,320. Variable period costs include selling commissions equal to 3% of revenue. 6. Profit on the special order is Tries 0/3 7. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.86 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit? Tries 0/3 8. There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 950 units. As a result of these lost sales, X Company's profits would fall by
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