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At the end of the year, a company offered to buy 4,610 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 4,610 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $17.00 each. The following information relates to the 68,400 units of the product that X Company made and sold to its regular customers during the year:

Per-Unit Total

Cost of goods sold $8.90 $608,760

Period costs 2.68 183,312

Total$ 11.58 $792,072

Fixed cost of goods sold for the year were $145,008, and fixed period costs were $84,816. Variable period costs include selling commissions equal to 4% of revenue.

  1. Profit on the special order is ______
  2. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.80 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit?
  3. 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

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