Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Questions 4 and 5 are based on the following information: As of December 1, 2021, X Company had produced and sold 64,400 units of its

image text in transcribed

Questions 4 and 5 are based on the following information: As of December 1, 2021, X Company had produced and sold 64,400 units of its only product. The following is the company's December 1 Income Statement: Sales Cost of goods sold Gross profit Selling & administrative costs Profit Total $761,852 495,880 265,972 161,000 $104,972 Per-Unit $11.83 7.70 4.13 2.50 $1.63 Analysis of cost of goods sold reveals that $128,800 of it was fixed; a similar analysis of selling & administrative costs reveals that $70,840 of it was variable. On December 2, a company offered to buy 4,030 units for $10.45 each. Because the special order product was slightly different than the regular product, direct material costs were expected to increase by $0.20 per unit, and some special equipment would have to be rented for a total of $15,000. 4. What would profit have been on the special order? Submit Answer Tries 0/4 5. If X Company had accepted the special order, it would have had to lower the selling price of its regular product by $0.49 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by Submit Answer Tries 0/4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Auditor Quo Vadis

Authors: Mervyn King, Linda De Beer

1st Edition

1138496774, 978-1138496774

More Books

Students also viewed these Accounting questions

Question

design a simple performance appraisal system

Answered: 1 week ago