At the end of the year, a company offered to buy 4,690 units of a product...

At the end of the year, a company offered to buy 4,690 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $19.00 each. The following information relates to the 67,200 units of the product that X Company made and sold to its regular customers during the year:

	Per-Unit	Total
Cost of goods sold	$8.01	$538,272
Period costs	2.53	170,016
Total	$10.54	$708,288

Fixed cost of goods sold for the year were $130,368, and fixed period costs were $73,920. Variable period costs include selling commissions equal to 2% of revenue.

6. Profit on the special order is

Tries 0/3

7. Assume the following two changes for the special order: 1) variable cost of goods sold will increase by $0.90 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit?

Tries 0/3

8. There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 500 units. As a result of these lost sales, X Company's profits would fall by

Solutions

Expert Solution

ekkarill92 answered 3 weeks ago

Next > < Previous

Related Solutions

At the end of the year, a company offered to buy 4,320 units of a product...

At the end of the year, a company offered to buy 4,320 units of a product from X Company for $12.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 69,400 units of the product that X Company has already made and sold to its regular customers: Sales $1,179,800 Cost of goods sold 595,452 Gross margin $584,348 Selling and administrative costs 183,216 Profit $401,132 For the year, variable cost of goods sold...

At the end of the year, a company offered to buy 4,860 units of a product...

At the end of the year, a company offered to buy 4,860 units of a product from X Company for $12.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 60,200 units of the product that X Company has already made and sold to its regular customers: Sales $1,143,800 Cost of goods sold 471,968 Gross margin $671,832 Selling and administrative costs 144,480 Profit $527,352 For the year, variable cost of goods sold...

At the end of the year, a company offered to buy 4,510 units of a product...

At the end of the year, a company offered to buy 4,510 units of a product from X Company for $11.00 each instead of the company's regular price of $18.00 each. The following income statement is for the 61,100 units of the product that X Company has already made and sold to its regular customers: Sales $1,099,800 Cost of goods sold 543,790 Gross margin $556,010 Selling and administrative costs 167,414 Profit $388,596 For the year, fixed cost of goods sold...

At the end of the year, a company offered to buy 4,580 units of a product...

At the end of the year, a company offered to buy 4,580 units of a product from X Company for $11.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 60,000 units of the product that X Company has already made and sold to its regular customers: Sales $1,140,000 Cost of goods sold 491,400 Gross margin $648,600 Selling and administrative costs 150,000 Profit $498,600 For the year, fixed cost of goods sold...

At the end of the year, a company offered to buy 4,610 units of a product...

At the end of the year, a company offered to buy 4,610 units of a product from X Company for a special price of $11.00 each instead of the company's regular price. The following information relates to the 61,300 units of the product that X Company has already made and sold to its regular customers: Total Per-Unit Revenue $1,164,700 $19.00 Cost of Goods Sold Variable 410,097 6.69 Fixed 115,244 1.88 Selling and Administrative Costs Variable 62,526 1.02 Fixed 63,139 1.03 ...

At the end of the year, a company offered to buy 4,200 units of a product...

At the end of the year, a company offered to buy 4,200 units of a product from X Company for a special price of $11.00 each instead of the company's regular price. The following information relates to the 69,100 units of the product that X Company has already made and sold to its regular customers: Total Per-Unit Revenue $1,312,900 $19.00 Cost of Goods Sold Variable 463,661 6.71 Fixed 128,526 1.86 Selling and Administrative Costs Variable 95,358 1.38 Fixed 71,864 1.04 ...

At the end of the year, a company offered to buy 4,650 units of a product...

At the end of the year, a company offered to buy 4,650 units of a product from X Company for $11.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 68,900 units of the product that X Company has already made and sold to its regular customers: Sales $1,171,300 Cost of goods sold 596,674 Gross margin $574,626 Selling and administrative costs 175,006 Profit $399,620 For the year, variable cost of goods sold...

At the end of the year, a company offered to buy 4,450 units of a product...

At the end of the year, a company offered to buy 4,450 units of a product from X Company for a special price of $11.00 each instead of the company's regular price of $17.00 each. The following information relates to the 62,400 units of the product that X Company made and sold to its regular customers during the year: Per-Unit Total Cost of goods sold $7.80 $486,720 Period costs 2.74 170,976 Total $10.54 $657,696 Fixed cost of goods sold for...

1. At the end of the year, a company offered to buy 4,510 units of a...

1. At the end of the year, a company offered to buy 4,510 units of a product from X Company for $12.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 62,400 units of the product that X Company has already made and sold to its regular customers: Sales $1,060,800 Cost of goods sold 504,192 Gross margin $556,608 Selling and administrative costs 156,000 Profit $400,608 For the year, fixed cost of goods...

Please answer ALL of the questions! At the end of the year, a company offered to...

Please answer ALL of the questions! At the end of the year, a company offered to buy 4,100 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 68,400 units of the product that X Company made and sold to its regular customers during the year: Per-Unit Total Cost of goods sold $9.43 $645,012 Period costs 2.60 177,840 Total $12.03 $822,852 ...

Subjects