Question
During the year, Walmart produced and sold 67,500 units of one of its products. The following is the related revenue and cost information: Revenue $1,147,500
During the year, Walmart produced and sold 67,500 units of one of its products.
The following is the related revenue and cost information:
Revenue $1,147,500
Cost of goods sold 548,100
Selling and administrative costs 284,175
Profit $315,225
Total variable cost of goods sold were $423,900, and total variable selling and administrative costs were $202,500.
At the end of the year, a company offered to buy 4,150 units but was only willing to pay $12.00 each.
9. If Walmart had accepted the special order, firm profits would have increased by
10. There is concern that regular customers will find out about the special order, and in order to retain all of Walmarts regular customers, the regular selling price would have to be reduced by $0.58. If the selling price were reduced and next year's unit sales turn out to be the same as this year's sales, firm profits would fall by
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