At the end of the year a company offered to buy 4180 units o

At the end of the year, a company offered to buy 4,180 units of a product from X Company for a special price of $12.00 each instead of the company\'s regular price of $18.00 each. The following information relates to the 69,600 units of the product that X Company has already made and sold to its regular customers:

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 $3,500.

5. Profit on the special order would be_______

	Total	Per-Unit
Revenue	$1,252,800	$18.00
Cost of Goods Sold
Variable	435,696	6.26
Fixed	144,072	2.07
Selling and Administrative Costs
Variable	80,736	1.16
Fixed	100,920	1.45
Profit	$491,376	$7.06

Per unit cost for regular order = 6.26 + 2.07 + 1.16 + 1.45 = $10.94

Per unit additional cost = $0.75

Per unit cost for special order = 10.94+0.75 = $11.69

Total Cost for special order of 4180 = 4180*11.69 + 3500(rental cost of special equipment) = $52364.2

Revenue generated from special order = 4180 * 12 = $50160

Profit on special order = -$2204.2 or Loss of $2204.2

$At the end of the year, a company offered to buy 4,180 units of a product from X Company for a special price of $12.00 each instead of the company\'s regular pr$

At the end of the year a company offered to buy 4180 units o

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