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Questions 5 and 6 refer to the following information At the end of the year, a company offered to buy 4,600 units of a product
Questions 5 and 6 refer to the following information At the end of the year, a company offered to buy 4,600 units of a product from X Company for a special price of $11.00 each instead of the company's regular price of $18.00 each. The following information relates to the 61,900 units of the product that X Company made and sold to its regular customers during the year: Cost of goods sold Period costs Total Per-Unit $8.56 2.56 Total $529,864 158,464 $688,328 $11.12 Fixed cost of goods sold for the year were $137,418, and fixed period costs were $70,566. Variable period costs include selling commissions equal to 4% of revenue. 5. Profit on the special order is Submit Answer Tries 0/5 6. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.88 per unit, and 2) there will be no selling commissions. What will be the effect of these two changes on the special order profit? Submit Answer Tries 0/5
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