2. Panthers Co. has received a special order for 2,800 units of its product at a special price of $220. The product normally sells for $290 and has the following manufacturing costs:

	Per unit
Direct materials		$	63
Direct labor			58
Variable manufacturing overhead			68
Fixed manufacturing overhead			64
Unit cost		$	253

Assume that Panthers Co. has sufficient idle capacity to fill the order without harming normal production and sales. If Panthers Co. accepts the order, what effect will the order have on the companys short-term profit?

Multiple Choice

• $86,800 increase

• $196,000 decrease

• $92,400 increase

• $92,400 decrease

3. Falcon, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output:

Regression Statistics
Multiple R	0.9839
R Square	0.9601
Observations	30

	Coefficients	Standard Error	T Stat	P-Value
Intercept	174,614	61,214	2.85	0.021
Production (X)	11.22	0.9232	12.15	0.000

What is Falcon's formula for estimating costs? (Cost equation of Falcon)

Multiple Choice

• Total cost = $174,614 + ($61,214 Production)

• Total cost = $11.22 + ($0.9232 Production)

• Total cost = $61,214 + ($0.92 Production)

• Total cost = $174,614 + ($11.22 Production)