Questions 5, 6, and 7 refer to the following problem:

At the end of the year, a company offered to buy 4,820 units of a product from X Company for a special price of $13.52 each. The following per-unit information relates to the 65,200 units of the product that X Company made and sold to its regular customers:

Selling price	$15.00
Cost of goods sold	8.25
Selling and administrative costs	2.29

Fixed cost of goods sold for the year was $139,528, and fixed selling and administrative costs were $80,196. 5. Profit on the special order is $30,607

You are correct. Your receipt no. is 164-8747

Previous Tries

6. Now assume that 1) direct material costs for the special order will increase by $0.86 per unit, 2) special equipment for the special order will have to be rented for $2,000, and 3) sales commissions, regularly 3% of sales are included in variable selling and administrative costs, will not apply to the special order. These three changes will cause the special order profit to decrease by $3,976

7. The marketing manager thinks that if X Company accepts the special order, regular customers will be lost, and regular sales will fall by 900 units. The effect of these lost sales would be to decrease firm profits by

At the end of the year, a company offered to buy 4,820 units of a product from X Company for a special price of $13.52 each. The following per-unit information relates to the 65,200 units of the product that X Company made and sold to its regular customers: Selling price $15.00 Cost of goods sold 8.25 Selling and administrative costs 2.29 Fixed cost of goods sold for the year was $139,528, and fixed selling and administrative costs were $80,196. 5. Profit on the special order is $30,607 6. Now assume that 1) direct material costs for the special order will increase by $0.86 per unit, 2) special equipment for the special order will have to be rented for $2,000, and 3) sales commissions, regularly 3% of sales are included in variable selling and administrative costs, will not apply to the special order. These three changes will cause the special order profit to decrease by $3,976 7. The marketing manager thinks that if X Company accepts the special order, regular customers will be lost, and regular sales will fall by 900 units. The effect of these lost sales would be to decrease firm profits by