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At the end of the year, a company offered to buy 4,350 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 4,350 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 66,100 units of the product that X Company made and sold to its regular customers during the year: Per-Unit Total Cost of goods sold Period costs Total $538,715 2.64 174,504 $10.79 $713,219 $8.15 Fixed cost of goods sold for the year were $118,980, and fixed period costs were $89,896 Variable period costs include selling commissions equal to 3% of revenue. 5. Profit on the special order is Submit Answer Tries 0/5 6. Assume the following two changes for the special order: 1) variable cost of goods sold will increase by $0.90 per unit, and 2) there will be no selling commissions. What will be the effect of these two changes on the special order profit? Submit AnswerTries 0/5
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