Question

#4. At the end of the year, a company offered to buy 4,540 units of a product from X Company for $11.00 each instead of the company's regular price of $18.00 each. The following income statement is for the 68,300 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,229,400
Cost of goods sold		538,204
Gross margin		$691,196
Selling and administrative costs		152,992
Profit		$538,204

For the year, variable cost of goods sold were $410,483, and variable selling and administrative costs were $72,398. The special order product has some unique features that will require additional material costs of $0.74 per unit and the rental of special equipment for $3,500.

4. Profit on the special order would be?

Answer 1