(Solved):At the end of the year, a company offered to buy 4,760 units of a product from X Company for…

 

Question

At the end of the year, a company offered to buy 4,760 units of a product from X Company for $12.00 each instead of the company’s regular price of $19.00 each. The following functional income statement is for the 64,700 units of the product that X Company has already made and sold to its regular customers:

Sales $1,229,300
Cost of goods sold 607,533
Gross margin $621,767
Selling and administrative costs 141,046
Profit $480,721

Fixed

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