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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
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
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