Question
At the end of the year, a company offered to buy 4,010 units of a product from X Company for $12.00 each instead of the
At the end of the year, a company offered to buy 4,010 units of a product from X Company for $12.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 65,800 units of the product that X Company has already made and sold to its regular customers:
Sales | $1,118,600 | |
Cost of goods sold | 477,050 | |
Gross margin | $641,550 | |
Selling and administrative costs | 149,366 | |
Profit | $492,184 |
For the year, fixed cost of goods sold were $135,548, and fixed selling and administrative costs were $80,934. The special order product has some unique features that will require additional material costs of $0.88 per unit and the rental of special equipment for $3,000. 4. Profit on the special order would be _________ <---- Answer
Due by 9PM EST. 2 and a half hours please help! I will rate highly.
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