Questions 1 and 2 are based on the followinginformation:
As of December 1, 2021, X
Company had produced and sold 66,400units of its only product. The following is the
company's December1 Income
Statement:
Analysis of cost of goods sold reveals that $139,440 of it wasfixed; a similar analysis of selling & administrative costsreveals that $92,960 of it was variable.
On December 2, a
company offered to buy 4,000 units for $11.51each. Because the special order product was slightly different thanthe regular product, direct material costs were expected toincrease by $0.25 per unit, and some special equipment would haveto be rented for a total of $19,000.
1. What would profit have been on the special order?
- Questions 1 And 2 Are Based On The Following Information As Of December 1 2021 X Company Had Produced And Sold 66 400 1 (50.1 KiB) Viewed 9 times
As of December 1, 2021, X
Company had produced and sold 66,400 units of its only product. The following is the
company's December 1 Income
Statement: Total $854,568 590,960 263,608 159,360 $104,248 1. What would profit have been on the special order? Submit Answer Tries 0/3 Analysis of cost of goods sold reveals that $139,440 of it was fixed; a similar analysis of selling & administrative costs reveals that $92,960 of it was variable. On December 2, a
company offered to buy 4,000 units for $11.51 each. Because the special order product was slightly different than the regular product, direct material costs were expected to increase by $0.25 per unit, and some special equipment would have to be rented for a total of $19,000. Sales Cost of goods sold Gross profit Submit Answer Selling & administrative costs Profit Tries 0/3 Per-Unit $12.87 8.90 3.97 2.40 $1.57 2. If X
Company had accepted the special order, it would have had to lower the selling price of its regular product by $0.60 per unit to retain all of its regular customers. This price reduction would have decreased
company profits by