At the end of the year, a company offered to buy 4,530 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $19.00 each.The following cost functions apply to X Company's regular production and sales of 67,300 units:
Cost of goods sold |
$146,041 + $6.67X |
Selling and administrative expenses |
$84,125 + $1.30X |
Total |
$230,166 + $7.97X |
Profit on the special order is...?
There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 950 units. These lost sales will cause X Company's profits to fall