Questions 5 and 6 refer to the following information

At the end of the year, a company offered to buy 4,710 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $18.00 each. The following information relates to the 62,200 units of the product that X Company made and sold to its regular customers during the year:

		Per-Unit	Total
Cost of goods sold		$8.39	$521,858
Period costs		2.41	149,902
Total		$10.80	$671,760

Fixed cost of goods sold for the year were $128,754, and fixed period costs were $83,348. Variable period costs include selling commissions equal to 4% of revenue. 5. Profit on the special order is $21,713

You are correct. Your receipt no. is 152-4891

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6. Assume the following two changes for the special order: 1) variable cost of goods sold will increase by $0.73 per unit, and 2) there will be no selling commissions. What will be the effect of these two changes on the special order profit?

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