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I'm not sure how to go about finding the solution please help. Last year, X Company sold 63,100 units of its only product for $18.00
I'm not sure how to go about finding the solution please help.
Last year, X Company sold 63,100 units of its only product for $18.00 each. Total costs were as follows: Cost of goods sold Variable $419,615 Fixed 128,724 Selling and administrative Variable $94,650 Fixed 85,185 At the end of the year, a company offered to buy 4,260 units of the product for $12.00 each instead of $18.00. X Company's production manager thought that the special order unts would probably require additional variable costs per unit of $1 13 and the rental of special equipment for $2.000. X Company had the capacity to produce the additional units, and there would have been no selling and administrative costs for the special order. But X Company still rejected the order 5.11 X Company had accepted the special order firm profits would have increased by A: $15,977 B: 518,693 C: $21,871 D: $25,589 E $29,939 P: 535,029 Tries 0/99 6. There was concern that regular customers would have found out about the special order and Company's regular sales this year would have talen by 950 unit. The result of me lost sales would have been to reduce X Company's profits this year by D: 56,450 E: 59.358 F: $13,568 A: $2.117 B: $3,069 C$4,451 Step by Step Solution
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