At the end of the year, a company offered to buy 4,960 units of a product from X
ID: 2453310 • Letter: A
Question
At the end of the year, a company offered to buy 4,960 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 66,700 units of the product that X Company has already made and sold to its regular customers:
he special order product has some unique features that will require additional material costs of $0.86 per unit and the rental of special equipment for $3,000.
Profit on the special order would be ______
The marketing manager thinks that if X Company accepts the special order, regular customers will be lost, with demand falling by 950 units. The effect of this loss of sales will be to decrease firm profits by ______
Total Per-Unit Cost of Goods Sold $1,133,900 $17.00 Variable Fixed 395,531 5.93 Selling and Administrative Costs 120,727 1.81 Variable 90,045 1.35 Fixed 75,371 1.13 Profit $452,226 $6.78Explanation / Answer
At the end of the year, a company offered to buy 4,960 units of a product from X
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