Answer:
| Since this special offer does not cost any additional selling and administrative costs so only variable cost will be there. |
| The profit would have increased by (selling price - variable cost)*number of units |
| = ($12*4710)-(434056/67400)*4710) |
| =$56520 -$30,332.4 |
| =$26,187.60 |
Questions 5, 6, and 7 refer to the following information Last year, X Company sold 67,400...
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Questions 5, 6, and 7 refer to the following information Last year, X Company sold 63,500 units of its only product for $19.00 each. Total costs were as follows: Cost of goods sold Variable Fixed Selling and administrative Variable Fixed $380,365 132,080 $72,390 78,740 At the end of the year, a company offered to buy 4,800 units of the product but only for $11.00 each. X Company had the capacity to produce the additional units, and even though there would...
Questions 5, 6, and 7 refer to the following information Last year, X Company sold 64,800 units of its only product for $17.00 each. Total costs were as follows: Cost of goods sold Variable $401,760 Fixed 143,208 Selling and administrative Variable $79,056 Fixed 75,816 At the end of the year, a company offered to buy 4,660 units of the product but only for $12.00 each. X Company had the Capacity to produce the additional units, and even though there would...
Questions 5, 6, and 7 refer to the following information Last year, X Company sold 64,800 units of its only product for $17.00 each. Total costs were as follows: Cost of goods sold Variable $401,760 Fixed 143,208 Selling and administrative Variable $79,056 Fixed 75,816 At the end of the year, a company offered to buy 4,660 units of the product but only for $12.00 each. X Company had the capacity to produce the additional units, and even though there would...
Questions 5, 6, and 7 refer to the following information Last year, X Company sold 68,100 units of its only product for $18.00 each. Total costs were as follows: Cost of goods sold Variable S439,926 Fixed 138,924 Selling and administrative Variable $78,315 Fixed 88.530 At the end of the year, a company offered to buy 4,880 units of the product but only for $11.00 each. X Company had the capacity to produce the additional units, and even though there would...
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