At the end of the year, a company offered to buy 4,950 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 62,300 units of the product that X Company made and sold to its regular customers during the year:
Per-Unit Total Cost of goods sold $8.38 $522,074 Period costs 2.54 158,242 Total $10.92 $680,316
Fixed cost of goods sold for the year were $114,009, and fixed period costs were $90,335. Variable period costs include selling commissions equal to 3% of revenue
Assume the following two changes for the special order: 1) variable cost of goods sold will increase by $0.73 per unit, and 2) there will be no selling commissions. What will be the effect of these two changes on the special order profit?
At the end of the year, a company offered to buy 4,950 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 62,300 units of the product that X Company made and sold to its regular customers during the year:
| Per-Unit | Total | ||
| Cost of goods sold | $8.38 | $522,074 | |
| Period costs | 2.54 | 158,242 | |
| Total | $10.92 | $680,316 | |
Fixed cost of goods sold for the year were $114,009, and fixed period costs were $90,335. Variable period costs include selling commissions equal to 3% of revenue
Assume the following two changes for the special order: 1) variable cost of goods sold will increase by $0.73 per unit, and 2) there will be no selling commissions. What will be the effect of these two changes on the special order profit?
Related questions
At the end of the year, a company offered to buy 4,950 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 62,300 units of the product that X Company made and sold to its regular customers during the year:
| Per-Unit | Total | ||
| Cost of goods sold | $8.38 | $522,074 | |
| Period costs | 2.54 | 158,242 | |
| Total | $10.92 | $680,316 | |
Fixed cost of goods sold for the year were $114,009, and fixed period costs were $90,335. Variable period costs include selling commissions equal to 3% of revenue.
5. Profit on the special order is
6. Assume the following two changes for the special order: 1) variable cost of goods sold will increase by $0.73 per unit, and 2) there will be no selling commissions. What will be the effect of these two changes on the special order profit?
At the end of the year, a company offered to buy 4,590 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 61,000 units of the product that X Company made and sold to its regular customers during the year:
| Per-Unit | Total | ||
| Cost of goods sold | $8.23 | $502,030 | |
| Period costs | 2.28 | 139,080 | |
| Total | $10.51 | $641,110 | |
Fixed cost of goods sold for the year were $135,420, and fixed period costs were $64,050. Variable period costs include selling commissions equal to 4% of revenue.
5. Profit on the special order is
6. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.73 per unit, and 2) there will be no selling commissions. What will be the effect of these two changes on the special order profit?
At the end of the year, a company offered to buy 4,470 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 66,600 units of the product that X Company made and sold to its regular customers during the year:
| Per-Unit | Total | |
| Cost of goods sold | $8.10 | $539,460 |
| Period costs | 2.51 | 167,166 |
| Total | $10.61 | $706,626 |
Fixed cost of goods sold for the year were $129,204, and fixed period costs were $83,250. Variable period costs include selling commissions equal to 4% of revenue.
What is the Profit on the special order?
Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.78 per unit, and 2) there will be no selling commissions. What will be the effect of these two changes on the special order profit?
