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Questions 5 and 6 refer to the following information At the end of the year, a company offered to buy 4,340 units of a product
Questions 5 and 6 refer to the following information At the end of the year, a company offered to buy 4,340 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $17.00 each. The following information relates to the 62,600 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 $8.89 2.70 Total $556,514 169,020 $11.59 $725,534 Fixed cost of goods sold for the year were $143,354, and fixed period costs were $87,640. Variable period costs include selling commissions equal to 3% 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 $0.87 per unit, and 2) there wll 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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