Why the effect of losing these sales will be to decrease


At the end of the year, X Company had sold 64,600 units of its regular product for $897,940. A company offered to buy 4,850 units for $11.94 each. There was enough capacity to produce these additional units. The following cost functions apply to X Company's regular operations: Cost of goods sold $6.78X + $138,244 Selling and administrative expenses $1.50X + $94,962 where X is the number of units produced and sold. Also, because the special order product is slightly different than the regular product, direct material cost per unit will be $0.78 less than the regular direct material cost per unit. 6. Profit on the special order is $21,534 You are correct. Your receipt no. is 162-9989 Previous Tries 7. Assume that regular variable selling and administrative expenses include sales commissions of 3% of dollar sales, and there will be no sales commissions on the special order. As a result, variable selling and administrative expenses per unit for the special order will be Tries 0/3 8. Assume that if X Company accepts the special order, it will lose 1,000 regular sales units. The effect of losing these sales will be to decrease profit by

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Accounting Basics: Why the effect of losing these sales will be to decrease
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