Please answer ALL of the questions!
At the end of the year, a company offered to buy 4,100 units ofa product from X Company for a special price of $12.00 each insteadof the company's regular price of $18.00 each. The followinginformation relates to the 68,400 units of the product that XCompany made and sold to its regular customers during theyear:
| Per-Unit | Total     |
Cost of goods sold | $9.43Â Â Â | $645,012Â Â Â |
Period costs | 2.60Â Â Â | 177,840Â Â Â |
Total | $12.03Â Â Â | $822,852Â Â Â |
Fixed cost of goods sold for the year were $151,848, and fixedperiod costs were $78,660. Variable period costs include sellingcommissions equal to 4% of revenue.
6. Profit on the special order is
7. Assume the following two changes for the special order: 1)variable cost of goods sold will decrease by $0.87 per unit, and 2)there will be no selling commissions. What would be the effect ofthese two changes on the special order profit?
8. There is concern that regular customers will find out about thespecial order, and X Company's regular sales will fall by 700units. As a result of these lost sales, X Company's profits wouldfall by