| Variable cost of Goods Sold per Unit= 380545/62900=6.05 per unit |
| Part-6 |
| Revised Variable cost= $6.05+0.76+0.27=$7.08 |
| Additional Contribution per Unit from sales of Addition al unit= Selling Price- Variable cost per Unit |
| =$11-$7.08=$3.92 per Unit |
| If, Revision of Variable cost due to increase in Material Cost and Labour Cost , Firm Profit from Special Order would be ( $3.92X4320)- 1500=$15434 |
| Firm Profit increase by Additional Unit , if Changes made in Variable cost |
| Additional Contribution per Unit from sales of Addition al unit= Selling Price- Variable cost per Unit |
| =$11-$6.05=$4.95 per Unit |
| Firm Profit from Sepcial Oder , if no changes in Variable cost y ( $4.95X4320)=$21384 |
| Special Order profit would be decreased by ( 21384-15434)=$4.95X4320)= $5950 |
I only have one try left! It is for an online exam so please help. The previous answers that I entered were $15,434 and...
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Last year, X Company sold 64,900 units of its only product for
$18.00 each. Total costs were as follows:
Cost of goods sold
Variable
$425,095
Fixed
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Selling and administrative
Variable
$86,966
Fixed
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At the end of the year, a company offered to buy 4,170 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 have been
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