Question
At the end of the year, a company offered to buy 4,960 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 4,960 units of a product from X Company for $11.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 65,300 units of the product that X Company has already made and sold to its regular customers:
Sales | $1,110,100 | |
Cost of goods sold | 517,829 | |
Gross margin | $592,271 | |
Selling and administrative costs | 166,515 | |
Profit | $425,756 |
For the year, fixed cost of goods sold were $142,354, and fixed selling and administrative costs were $83,584. The special order product has some unique features that will require additional material costs of $0.84 per unit and the rental of special equipment for $2,500. 4. Profit on the special order would be?
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