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At the end of the year, a company offered to buy 4,740 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 4,740 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 68,600 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 $8.71 2.48 Total $597,506 170,128 $767,634 $11.19 Fixed cost of goods sold for the year were $132,398, and fixed period costs were $70,658. Variable period costs include selling commissions equal to 3% of revenue. 6. Profit on the special order is Submit Answer Tries 0/3 7. Assume the following two changes for the special order: 1) variable cost of goods sold will increase by $0.72 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit? Submit Answer 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 550 units. As a result of these lost sales, X Company's profits would fall by Submit Answer Tries o/3
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