At the end of the year, a company offered to buy 4,340 regular units from X Comp

Question

At the end of the year, a company offered to buy 4,340 regular units from X Company for a special price of $12.99 each. The following information is for the year during which the company had sold 68,200 units to its regular customers:

Total fixed cost of goods sold were $130,944, and total fixed selling and administrative costs were $90,024.

5. Profit on the special order is $29,772

need #6 only please!!!!!!!

Total Per-Unit Revenue $1,023,000 $15.00    Cost of goods sold 478,082 7.01    Selling and administrative costs   160,952   2.36    Profit $383,966 $5.63   

Explanation / Answer

OLD DATA

Cost of goods sold = 478082

Total fixed cost of goods sold = 130,944

Total variable cost of goods sold = 347138

Selling and administrative costs = 160952

fixed Selling and administrative costs = 90024

variable Selling and administrative costs = 70928

Total variable cost of goods sold per unit= 347138/68200 =5.09

variable Selling and administrative costs per unit = 70928/68200 = 1.04

AFTER CHANGES

Total variable cost of goods sold per unit= 5.09+0.84 = 5.93

variable Selling and administrative costs per unit =1.04 - 0.59 = 0.45

cost incurred = 0.45+5.93 = 6.38

cost incurres for all units = 6.38*4340 = 27689.2

special equipment rent = 4,500

total cost incurres for all units = 27689.2+4500 = 32189.2

profit = 12.99*4340 - 32189.2 = 24187.4

profit decresed by = 29772 - 24187.4 = 5584.6

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