ANSWERS TO QUESTIONS
For the 10,000 units purchased by the large customer, this would add about $6.96 of cost to each unit. This brings the unit product cost to $83.96. 4. Current profit: Sales [($53.25 ( 15,000) + ($55.75 ( 10,000)] $1,356,250. COGS [($42.60 ( 15,000) + ($44.60 ( 10,000)] 1,085,000. Gross profit $ 271,250. Less: Selling expenses 80,000. Income before taxes $ 191,250. To compute profit associated ... ................
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