At the end of the year, a company offered to buy 4,370 units of a product from X Company for a speci

At the end of the year, a company offered to buy 4,370 units of a product from X Company for a special price of $12.00 each instead of the company’s regular price of $18.00 each. The following cost functions apply to X Company’s regular production and sales of 64,600 units: Cost of goods sold $145,350 + $6.54X Selling and administrative expenses $85,918 + $1.45X Total $231,268 + $7.99X

7. Sales commissions are included in regular variable selling and administrative expenses and are 4% of sales, but assume that there will be no sales commissions on the special order. As a result, profit on the special order will increase by.

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