Question
XYZ company produces and sells a single product, and provides the following per-unit information: Selling Price: $60 Variable production cost: $13 Fixed Production Cost: $19
XYZ company produces and sells a single product, and provides the following per-unit information:
Selling Price: $60
Variable production cost: $13
Fixed Production Cost: $19
Variable selling cost: $7
The company recently introduced a new version of its product but still has 2,000 units of the old obsolete version in stock, which a foreign distributor wants to purchase for sale in another country. The variable selling cost is a sales commission that would not have to be paid if the distributor purchases the obsolete units. The company is unaware of any other interested buyers for the obsolete units. If the foreign distributor pays $10/unit, what would be XYZ's total profit or loss on this order? (Make sure to calculate the total, and not the per-unit amount; Round to the nearest dollar; Use a positive number to indicate a profit and a negative number to indicate a loss.)
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