Question
At the end of the year, a company offered to buy 4,340 regular units from X Company for a special price of $12.99 each. The
At the end of the year, a company offered to buy 4,340 regular units from X Company for a special price of $12.99 each. The following information is for the year during which the company had sold 68,200 units to its regular customers:
Total | Per-Unit | |||
Revenue | $1,023,000 | $15.00 | ||
Cost of goods sold | 478,082 | 7.01 | ||
Selling and administrative costs | 160,952 | 2.36 | ||
Profit | $383,966 | $5.63 |
Total fixed cost of goods sold were $130,944, and total fixed selling and administrative costs were $90,024.
5. Profit on the special order is $29,772
You are correct. Your receipt no. is 164-325 | Previous Tries |
6. Now assume that if the special order is accepted, three things will happen: 1) direct material costs will increase by $0.84 per unit, 2) special equipment will have to be rented for $4,500, 3) sales commissions, regularly $0.59 per unit, will not be paid. These changes will cause the special order profit that you computed in #5 to decrease by
need #6 only please!!!!!!!
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