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Questions 6, 7, and 8 refer to the following information: At the end of the year, a company offered to buy 4,400 units of a
Questions 6, 7, and 8 refer to the following information: At the end of the year, a company offered to buy 4,400 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 64,700 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 $8.95 2.38 Total $579,06.5 153,986 $11.33 $733,051 Fixed cost of goods sold for the year were $135,870, and fixed period costs were $82,169. Variable period costs include selling commissions equal to 2% of revenue. 6. Profit on the special order is $17,776 You are correct. Previous Tries Your receipt no. is 152-9652 7. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.84 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit? $5,280 You are correct. Previous Tries Your receipt no. is 152-3642 8. There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 750 units. As a result of these lost sales, X Company's profits would fall by Submit AnswerTries 0/3
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