Question: 7. Consider the following three changes. Direct material costs on the special order will increase by $0.82 per unit, direct labor costs on the special
Verizon LTE 7:40 PM 86%, s2.lite.msu.edu Questions 6, 7, and 8 refer to the following information At the end of the year, a company offered to buy 4,600 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 60,800 units of the product that X Company made and sold to its regular customers during the year: $1,033,600 Revenue Cost of goods 576,992 sold Selling and administrative 173,888 Costs $282,720 Profit Fixed cost of goods sold for the year was $138,016, and fixed selling and administrative costs were $88,160. 6. Profit on the special order is $15,502 You are correct. Previous Tries Your receipt no is 160-9591 G 7. Consider the following three changes. Direct material costs on the special order will increase by $0.82 per unit, direct labor costs on the special order will decrease by $0.41 per unit, and X Company will have to rent special equipment for $1,000. The effect of these changes will be to reduce profit on the special order by Submit Answer Tries 0/3
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