All I need is question 6 please and thank you. I am on my last attempt. At the e

Question

All I need is question 6 please and thank you. I am on my last attempt.

At the end of the year, a company offered to buy 5,000 units of a product from X Company for $12.00 each instead of the company's regular price of $19.00 each. The following functional income statement is for the 63,000 units of the product that X Company has already made and sold to its regular customers: Fixed cost of goods sold for the year was $133,560, and fixed selling and administrative costs were $66,780. The special order product has some unique features that will require additional material costs of $0.75 per unit and the rental of special equipment for $4,000. 6. Assume the following fact: regular variable selling and administrative costs include sales commissions equal to 2% of sales, but there will be no sales commissions on the special order. This will cause the special order profit to increase by

Explanation / Answer

0.75

fixed portiion variable portions per unit 63000 SALES 1197000 COGS 541800 133560 408240 6.48 SELLING ANDMIN COSTS 137970 66780 71190 1.13 PROFIT 517230

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