We first need to determine the cost per unit for 64,300 units
Cost per unit = Total fixed cost + Total variable cost / number of units
= 412806+145961+84876+67515/64300 units
= 711158/64300
= 11.06
So here the cost per unit is 11.06 and the sale price offered to but 4870 units is $ 12 per unit
Hence, if company X accepted the offer then the profits would have gone up by = Sale price per unit - cost per unit * number of units
=(12-11.06)* 4870 units
= $4577.8
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Last year, X Company sold 64,900 units of its only product for
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Cost of goods sold
Variable
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Fixed
145,376
Selling and administrative
Variable
$86,966
Fixed
79,827
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